(25 points) To save the economy from the impact of Covid-19, every country is introducing stimulating monetary policies (increasing permanent money supply). Assume that the Canadian Dollar (CAD) appreciates against the US dollar (USD) during the COVID pandemic, then use a framework like Figure 4- 12 (or 15-11) in Chapter 4 or 15 entitled, Money, Interest Rates, and Exchange Rates"), to analyze the short-term and long-term equilibria of ECAD/USD. Note: the expected USD return will also go back to its original level in the long run. (25 points) To save the economy from the impact of Covid-19, every country is introducing stimulating monetary policies (increasing permanent money supply). Assume that the Canadian Dollar (CAD) appreciates against the US dollar (USD) during the COVID pandemic, then use a framework like Figure 4- 12 (or 15-11) in Chapter 4 or 15 entitled, Money, Interest Rates, and Exchange Rates"), to analyze the short-term and long-term equilibria of ECAD/USD. Note: the expected USD return will also go back to its original level in the long run