[4 points total] Recently, many central banks have raised interest rates to control inflation. To examine the effects of their policy on other countries, consider the Mundell-Fleming model with the following equations. PM=L+kYhRY=A+cYbR+gE Here, all variables, parameters, assumptions, and equations are exactly the same as in class. Suppose that the foreign central bank raises R exogenously. Explain the qualitative effects of this policy on {Y,C,I,NX,R} of home economy and the exchange rate E under (i) a pure flexible exchange rate regime and (ii) a pure fixed exchange rate regime. [4 points total] Recently, many central banks have raised interest rates to control inflation. To examine the effects of their policy on other countries, consider the Mundell-Fleming model with the following equations. PM=L+kYhRY=A+cYbR+gE Here, all variables, parameters, assumptions, and equations are exactly the same as in class. Suppose that the foreign central bank raises R exogenously. Explain the qualitative effects of this policy on {Y,C,I,NX,R} of home economy and the exchange rate E under (i) a pure flexible exchange rate regime and (ii) a pure fixed exchange rate regime