Assume a Fixed Foreign Exchange Rate System (Bretton Woods), where the foreign exchange rate e is fixed at e=5. If the annual trade and capital flows accounts are determined by the relations NX=9030e, and NCO=70+10e, answer the following questions. Question 9): a): Find the free float foreign exchange rate equilibrium; is it higher or lower when compared to the fixed rate? Answer: Question 10): Given that the system is a Fixed Foreign Exchange Rate System, in the absence of Sterilization policy, will interest rates increase, decrease or remain the same? Answer: Question 11): If the Central Bank intended -all along - to decrease the interest rates by increasing the Monetary Base H by 30 , that is H=30 what is the required intervention by the central bank, in the domestic money market? (Hint: Find the required change in Domestic Credit)