2. Colombia is an economy in Latin America. It has a floating exchange rate. Assume that the demand for money is given by M = LPY Where M is money, P is the price level, Y is real income and L is 0.10. a. If income for Colombia grows at five percent and the money supply grows at the rate of ten percent. US inflation is zero. Calculate inflation for Colombia. State your assumptions b. What happens to the Colombian exchange rate versus the US if a. holds? What assumptions do you use? C. Assume that the US interest rate is four percent. What is the interest rate in the Colombia? State your assumptions. d. What is the real interest rate in Colombia? State your assumptions