answer all parts of question # 3 show work please. #3. Consider the central bank balance sheet for the country of Rhony. Rhony currently has 2,500 million lira in its money supply, 1,800 million of which is backed by domestic government bonds. Assume that Rhony maintains a fixed exchange rate and that the foreign interest rate remains unchanged. a. Show Rhonys central bank balance sheet, assuming there are no private banks. Calculate the backing ratio. b. Suppose that Rhonys central bank sells 300 million lira in government bonds. Show how this affects the central bank balance sheet. c. Calculate the new backing ratio. Does this change affect Rhonys money supply? Explain why or why not. d. Now suppose that there is an economic recession in Rhony so that output falls by 5%. How will this affect money demand in Rhony? How will forex traders respond to this change? Explain.