1. Apply the real exchange rate model (thus including PPP) to predict the change in the nominal exchange rate in the following scenarios separately. To simplify the problem, we assume the domestic and foreign economies are identical. a. The domestic central bank increases money supply significantly to reduce the adverse effect of Covid-19 pandemic on the economy. (5/30); b. Both domestic and foreign central banks increase money supply by the same amount. (5/30). c. Both domestic and foreign governments increase their spending, but the foreign one increases by a larger amount. (5/30)