Would love some help with this homework question.

Will be upvoted if answer is serious and well detailed.

u_t = 0

2. Domestic Interest Rates below World Interest Rates. Consider the following open New Keynesian economy s^t=(i^tEt[^t+1c])(i^tEt[^t+1c])+Et[s^t+1],x^t=Et[x^t+1]1(i^tEt[^t+1c])Et[s^t+1],^tc=Et[^t+1c]+~~ox^tEt[s^t+1]+s^t, where =+(1)(1),~~o=(+)~~,=1+~~=(+)(1)(1), and s^t=s^ts^t1. Suppose that world nominal interest rates increase by 5 percent, i.e. i^t=0.05. Suppose the economy goes back to steady state in just one period. Let =0.90,=5,=1, =1, and =0.666. For an open economy with =0.5, consider two possible scenarios: (i) the interest rates at the local economy respond only slightly i^t=0.025 and (ii) the interest rates increase by 5%i^t=0.05. For both scenarios, calculate s^t,x^t and ^tc. Explain your results briefly