Questions are attached below:

a Let C : Co + cl' T } be the consumption function with a marginal propensity to consume equal to c]. Check if the following statement is true or false: \"An exogenous and temporary increase in the level of consumption (a rise in Co for example) causes, in the short run, (i) a shift of the aggregate demand up in the Keynesian cross; (ii) a shift of the DD schedule down and to the right; (iii) an appreciation of the domestic currency relative to the foreign currency; AND [iv] an increase in the level of income.\" Use a diagram of the Keynesian cross and a graph of the AADD model to support your answer. [20 points] b Check if the following statement is true or false: \"Relative to a TEMPORARY increase in the domestic money supply, a PERMANENT increase in the domestic money supply causes (i) a higher depreciation of the domestic currency relative to the foreign currency and (ii) a higher increase in the level of income." Support your answer with a diagram of the the AADD mode]. [15 points]