Answer the following questions please.

(1) In November 2020, the Central Bank of Mountville reduced the target overnight rate from 4% to 2%. Assume that the NBR is 1 billion M$ and that before the change, the intersection of supply and demand has been on the vertical portion of the Reserves Supply curve. Answer the following questions. (i) Use the Reserves Market model to illustrate this change. (ii) Show the impact of this policy on the Money Market. (iii) What is the impact of this change on the Goods Market, if the policy is successful? (iv) What is the impact of this change on the Goods Market, if the policy is unsuccessful? (2) In November 2020, the Central Bank of Southborder reduced the target overnight rate. Assume that Southborder is Home. Using the Foreign Exchange Market model, explain the impact of this po]icy on the exchange rate of 535 against N$, the currency of Northborder (Foreigp J