#3 Let's assume we are looking at the Rupee/$ exchange rate with India as the Home currency in our diagrams. a. Show how a permanent increase in India's money supply affects the money market and the exchange rate market. Draw the linked figures for both markets and label both the short run equilibrium and the long run equilibrium. b. Show what happens to the following variables over time (India's money supply, price level, real money supply, interest rate, and the Rupee/$ exchange rate) by drawing separate figures for them with time on the X axis. c. Write down what happened in the short run to: India's interest rate, the exchange rate, the expected future exchange rate, and the price level. d. Write down what happened in the LONG run to: India's interest rate, the exchange rate, the expected future exchange rate, and the price level