4) The gold standard as an international transmission mechanism of US monetary policy a) Consider the UK as an example of gold standard country. Use the IS LM NFO NX graphs draw for the UK to discuss the impact on the UK of The Fed increasing interest rates in 1928. In particular, indicate which curves shift and which way. Explain what happens in the UK to the UK BOP and UK gold holdings and hence the UK gold cover ratio. b) Given that the Bank of England (BoE) wanted to remain on gold, how did the monetary policy of BoE have to respond to defend the pound and remain on the gold standard. Indicate what happens in your IS LM PC NFO NX graphs for the UK. What is the impact of the BoE monetary policy on UK spending, output, unemployment, inflation, UK NFO, the UK BOP and UK gold holdings? 4) The gold standard as an international transmission mechanism of US monetary policy a) Consider the UK as an example of gold standard country. Use the IS LM NFO NX graphs draw for the UK to discuss the impact on the UK of The Fed increasing interest rates in 1928. In particular, indicate which curves shift and which way. Explain what happens in the UK to the UK BOP and UK gold holdings and hence the UK gold cover ratio. b) Given that the Bank of England (BoE) wanted to remain on gold, how did the monetary policy of BoE have to respond to defend the pound and remain on the gold standard. Indicate what happens in your IS LM PC NFO NX graphs for the UK. What is the impact of the BoE monetary policy on UK spending, output, unemployment, inflation, UK NFO, the UK BOP and UK gold holdings