Can you please help me with this question?

6.16 Observational equivalence. (Sargent, 1976.] Suppose that the money supply is determined by m; : c'zgc] + 2t: where c and z are Vectors and 91 is an i.i.d. disturbance uncorrelated with 2171. e: is unpredictable and unobservable. Thus the expected component of mt is c'zlil, and the unexpected component is 91. In setting the money supply= the Federal Reserve responds only to variables that matter for real actinty; that is, the Variables Luz directly a'ecty. Now consider the following two models: (I) Only unexpected money matters, soy! = a'zr_1 + be! + Vf; (it) all money matters, so yr = ar.' 2r] + Bmf + vt. In each specication, the disturbance is 1.i.d. and uncorrelated with liq and 9;. (a) Is 11 possible to distinguish between these two theories? That is, given a candidate set of parameter values under, say, model (i), are there parameter values under model (if) that have the same predictions? Explain. (6) Suppose that the Federal Reserve also responds to some variables that do not directiy a'ect output; that is, suppose m1 = 621,] + y'wkl + 91 and that models (i) and (ii) are as before (with their distubanees now uncorrelated with w; -l as well as with 23.1 and 2;), In this case, is it possible to distinguish between the two theories? Explain