2. True or False. [37 points] Explain your answer and use the proper diagram when applicable. No credit without explanation. a) [20 points] Explain if the following statement is true or false: ' 'All else equal, in an economy with FIXED exchange rate, if there is a TEMPORARY exogenous INCREASE in the real demand for money, the central bank can keep the exchange rate fixed at E H, F by PURCHASING foreign assets (foreign currency) in the foreign exchange market." Support your answer with a graph of the AA-DD model. Explain what would happen to the AA and DD curves if the central bank does not intervene, whv the variables changes, and whv the curves shift. G