a) What is WaIras's Law. Explain how equilibrium is achieved in an economy with 5 markets.

b) The asset market in the Portfolio Balance Model is in equilibrium when all three assets market, that is, money market, the domestic and foreign bonds markets, clear at the appropriate domestic interest rate and exchange rate.' Explain this statement

c) Explain foreign-exchange operation, free market operation and sterilization under the Portfolio Balance Model using correct diagrams.