I will provide a brief overview of questions #1 and #2.
#1) The MPC falls, so the MPS rises. This causes AE to be less steep, lowering the equilibrium value of Y. Also, the multiplier falls. With a flatter AE curve, monetary tightening, which raises r and lowers autonomous C and Ip, will cause smaller declines in equilibrium Y.
#2) As foreign income rises relative to that in the US, this stimulates US exports to these countries. At the same time, US equities become relatively less attractive, depressing equity prices here. This results in the dollar depreciating relative to foreign currencies (whose economies are growing more rapidly than the US). The capital outflow will also affect fixed income markets here, resulting in a sell off, and higher interest rates.
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