3. Initially the central bank balance sheet at Home is the following. Money supply is 40 pesos (M=40), the stock of local bonds is 20 (B=20), and the foreign reserves are 20 dollars (R=20). As in classes, the exchange rate is xed and equal to one (E=1). a.) Show this balance sheet using a graphical representation as in class. Suppose the stock of local bonds (B) at home increases by 20%. b.) Describe the type of operation the central bank has to do in order to keep the exchange rate xed