1. Please use the Money model to discuss the impact of the following changes. Make sure to describe in words what exactly is happening. a. In the short run, the Federal Reserve decreases money supply. b. In the long run, the Federal Reserve decreases money supply. 2. What can one learn from the following figure? Use the balance of payment equation to explain this figure. Please pay attention to the two different periods (positive and negative net foreign wealth). Current account, nel lorcin wealth (billions of dolla) 400 Net foreign wealth 200 0 Currcnil account -200 -100 -GOO ADO -1000 -1200 -1400 -1600 -1800 -2010 -2200 --2400 2000 -2000 -3000 3200 3400 3000 1976 1979 1980 1982 1984 1985 1989 1990 1999 1994 1995 1998 2000 2002 2004 2006 2009 1. Please use the Money model to discuss the impact of the following changes. Make sure to describe in words what exactly is happening. a. In the short run, the Federal Reserve decreases money supply. b. In the long run, the Federal Reserve decreases money supply. 2. What can one learn from the following figure? Use the balance of payment equation to explain this figure. Please pay attention to the two different periods (positive and negative net foreign wealth). Current account, nel lorcin wealth (billions of dolla) 400 Net foreign wealth 200 0 Currcnil account -200 -100 -GOO ADO -1000 -1200 -1400 -1600 -1800 -2010 -2200 --2400 2000 -2000 -3000 3200 3400 3000 1976 1979 1980 1982 1984 1985 1989 1990 1999 1994 1995 1998 2000 2002 2004 2006 2009