answer the question

The following diagram shows the simultaneous equilibrium in the US money market and the European exchange market. Both asset markets are in equilibrium at the interest rate R13, and exchange rate E1$Ig at these values, money supply equals money demand (point 1) and the interest parity condition holds (point 1'). Dollar/euro exchange rate, Es, Return on doliar deposits Forign ' exc ange market Em Expected return on euro deposits 0 Rates of return 1 (in dollar terms) Fl 9 I L(Rs, Yus) Ms . . l Money . :oSneria market Pus 1 supply (increasing) i use real m oney holdings Using the above diagram, explain in detail the shortrun effect of a permanent decrease in the US money supply