1. Consider a group of open economies with perfect capital mobility among them. a. Assume that there is a Leader country. All other countries (referred to as the Follower countries) fix their exchange rate to the Leader country. Discuss the effectiveness of monetary policy in the Follower countries. b. If all the Follower countries fix their exchange rate to the Leader country, is the Leader country's exchange rate not also fixed? What does this imply for the effectiveness of the Leader country's monetary policy? c. If the Leader country reduces its money supply to fight inflation, what must the Follower countries do to enforce their fixed exchange rates? What is the effect on their economies? What would happen if the follower countries did nothing