Why do economists typically view trade as beneficial to all countries involved? Explain what are the gains to trade. Are all individuals within a country better off as a result of trade with other countries? Explain your reasoning.

a. Describe what is happening to the country’s capital account of the balance of payments prior to government changing its tack on supporting the value of the currency? Which items in the capital account are likely to change and how will they change?    b. What is likely to happen to the country’s real exchange rate initially and after the government changes its policy stance with respect to supporting the currency? Please justify your answer. c. What happens to the current account balance right after the oil price shock and after the government stops supporting the currency? What items of the current account are likely to change and why?    d. How is the market for non-tradables in the domestic economy affected in these two stages?

In the Mundell–Fleming model with fixed exchange rates; i) what happens to aggregate income, the exchange rate, and the trade balance when government increases spending or reduce taxes. ii) and, what would be the result if the exchange rate is floating? graphical explantion if possible please

Which of the following is not included in the current account?a. exports of goodsb. imports of goodsc. U.S. capital inflow and outflowd. unilateral transfers