(3a) Home's central bank causes a temporary decrease in Home's money supply; prices do NOT have enough time to adjust. Add this policy change and its impact by drawing additional curves etc. on the graphs below (shi in the MS vertical hie. How will this policy change affect the spot exchange rate of Homels currency, assuming it's the only change that has taken place? (Write your answer to this part of the question below the graphs.) (3b} Foreign's central bank causes a temporary increase in Foreign's money supply and changes the interest rate (from PR to FR1 ); foreign prices do NOT have enough time to adjust. Add this policy change and its impact by drawing additional curves etc. on the right-hand side graph Mshift in the FR line)1.__1 . How will this policy change affect the spot exchange rate of Homeis currency. assuming it's the only change that has taken place (no changes in the home money supply! )? (\"trite your answer to this last part of the question below the graphs} (a) Home Money Market (b) Foreign Exchange [FX] Market DRE inst Expected est Returns .1 I,\" --------------------------------------------------------------------- Ml JP" _ Ree! Money Balances, E1 Spot Exchange Rate HIT- WP\