(A). Other things equal, how would you expect the following shifts to affect a country's real exchange rate against foreign currencies? The overall level of spending doesn't change, but domestic residents decide to spend more of their income on non traded products and less on tradables. Foreign residents shift their demand away from their own goods and towards the home country's exports. [5 points) (B). Use the DD-AA model to discuss whether or not a devaluation under a fixed exchange rate has the same long-run effect as a proportional increase in the money supply under a floating rate. [2.5 Points) (C). A balance sheet for a hypothetical central bank is shown below: Central Bank Balance Sheet Assets Foreign assets $1,000 Domestic assets $1,500 Liabilities Deposits held by private banks $500 Currency in circulation $2,000 Write the new balance sheet if the bank sells $100 worth of foreign bonds for domestic currency