5. The following is the general structure of foreign exchange market and money market. The following is based on the asset approach E-E 1) Foreign exchange market; The equilibrium is based on the interest parity condition; R = R* + E 2) Money market is governed by the money demand and money supply.; M 0.01 X Y M = L(R,Y) = -10 x R + 6-a; Given M = 900, P = 100, Y = 1,000, R* = 8%, E = 1.1, then what is the equilibrium foreign exchange rate E? 6-b; If money supply M increases permanently what is happening the equilibrium foreign exchange rate E? Show the change of the foreign exchage rate by a graph. Moreover explain the overshooting of the foreign exchagne rate.