Can I get some detailed explanations and answer for this question? Also, I'm a bit confused with graphing, so could you please label the graph and explain?

You are the head of the central bank of a country with a xed exchange rate and open capital markets. Then there is a bad piece of news which you think will cause the unemployment rate to rise by 3 percentage points and cause the currency to depreciate by 20% if you do nothing. a. What are 3 possible responses you can make? Draw FX market diagrams to illustrate your choices. 1:. Explain how these 3 choices illustrate the trilernma