Question 5 [8 points] Suppose a country has a current account surplus of $21 billion, but a financial account deficit of $17 billion. a) Is its balance of payments a deficit, surplus or neither? The balance of payments is b) What change in ofcial exchange reserves would you see? Note: Keep $0 for the second part if you think there is no change. The ofcial exchange reserves would _ by $I billion. c) Is the central bank buying or selling foreign currency? The central bank is _ foreign currency. d) What effect does the central bank's foreign currency purchase or sale have on the monetary base? The monetary base