This is equivalent to a depreciation of the dollar E t rises, and the RHS falls. The reason that the multilateral exchange rate is different in the 2 cases is that in the first case, when the dollar appreciates against the kontanto, Esperanza is a larger trading partner than Monolando. This means there is a larger effect on the exchange rate than when E M moves in the second case. The multiplier is 5, and autonomous spending is 54. It looks just like the basic goods market model of Ch. 3.
Output is the same in the closed and open economy.
There is neither a trade deficit nor surplus. The multiplier effect exists because, when Y rises, people consume a fraction of their income and boost output even further. In this way, some of the rise in G leaks out of the economy, and boosts foreign production, so fiscal policy is less effective. This is because the rise in G has increased imports but has not affected exports. There is a big difference in the trade balance, however.