1. Consider the integrated model of the FX market and the money market. La. Suppose that Home central bank reduced nominal money supply: How would this shift Home rate of return curve and Foreign rate of return curve: Leftward, Rightward, or No shift. Home rate of return curve: Foreign rate of return curve: Lb. Suppose that Foreign central ban]: reduoed nominal money supply. How would this shift Home rate of return curve and Foreign rate of return curve: Leftward, Rightward, or No shift. Home rate of return curve: Foreign rate of return curve: 1.c. Home price rose. How would this shift real money supply curve: Upward, Downward, or No shift? How would it change the equilibrium exchange rate: Increase, Decrease, or No change? Real money supply curve: Equilibrium exchange rate! E F.R.R. Real money Real money supply 1 Real money supply 2 Real money