[(3) [2|] points] Suppose that real money holding decision is explained by| g: =L{s,m, where M is measmai by M1, which is set. by the central bank, and i is nominal interest rate. To ght against future inflation, the central bank announces that it will lower money supply starting from the next period. Assume that the central bank does not sell or purchase government bonds this period. (a) [12 points] Explain honr the changes in {anticipated} money supplies have eHects on price level in this period, H. In particular, discuss how the central bank effectively maintain a low and stable ination. {b} [8 points] What kinds of social costs due to the central bank's action do you expect? Explain in some detail