2. Home central bank changed the nominal money supply permanently at time S. The economy would reach the new long run equilibrium at time L. The figure below shows the time path of the expected exchange rate. E Based on the figure, answer the question below. 2.a. Choose the correct time path of the real money supply. M/P Figure A -Time L M/P Figure C Time MP Figure B M/P S Figure D -Time Time Time 8 2.b. Choose the correct time path of the exchange rate. E Figure A Figure C -Time Time E Figure B Time L E Figure D L -Time