Use the Three-Sector Model to determine the effects that higher Chinese housing prices, which increase household wealth,

Question:

Use the Three-Sector Model to determine the effects that higher Chinese housing prices, which increase household wealth, have on the China's real GDP, GDP Price Index, real (yuan relative to U.S. dollars), quantity of yuan or dollars traded per period, real risk-free interest rate, real and nominal interest rate, quantity of real loan able funds per period, reserve assets, and M2 money multiplier. Use both graphical analysis and brief explanations to support your answer. Assume the Chinese: (1) is fixed relative to the dollar, (2) international capital markets are highly mobile, (3) aggregate supply curve is in the intermediate range, relatively close to the Keynesian range, and
(4) government currently has a budget deficit.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...