Please write down the answer and draw the joint diagram, thanks a lot

7 Slowcession A recession is often the consequence when the central bank starts raising borrowing costs. To combat inflation brought on by the Covid-19 pandemic, the Federal Reserve aggressively increased interest rates and reduced money supply since 2022. However, many expect a mild or short recession in 2023. 1. (5 Points) Use a joint diagram showing the nominal exchange rate, expected currency returns, and real money holdings to analyze the short- and long-term effects of a permanent monetary contraction along with a temporary recession (e.g., decrease in real income) on the U.S. interest rate, price level, and nominal exchange rate. Assume prices are sticky in the short term and flexible in the long term. 2. (2 Points) Explain the economic mechanisms that allow the money market and foreign exchange market to restore equilibrium. 3. (3 Points) Suppose other countries also experience a temporary recession at the same time, all else equal. How does this change your conclusions above