4. Consider the equilibrium in the integrated model of the FX market and the money market. Suppose that Home central bank changed nominal money supply temporarily. Because of the change, Foreign currency depreciated. Answer how the change in the nominal money supply would shift Home real money supply curve: Upward or Downward, and how the change in nominal money supply shifted Foreign rate of return curve: Leftward, Rightward, or No shift. Home real money supply curve! Foreign rate of return curve: Linking Money, the Interest Rate, and the Exchange Rate Fig. 15-6: Simultaneous Equilibrium in Home Money Market and the Foreign Exchange Market Exchange rate R turn on CH deposits E* _______ Return on CF deposits Rate of return .MS/P Real money supply Real money holdings