Consider again the scenario described in question 4 of Homework 3 , except that the money demands in Korea and Japan now are inversely related to their respective nominal interest rates. Remember that Korea is the home country. The Korean noney growth rate -is =.10, while that of Japan is =.03; the Korean real growth rate is g=.04 and the Japanese real growth rate is g=.01. Assume in addition that the nominal interest rate in Japan is i=.02. a. What is the nominal interest rate in Korea? b. Show that the real interest rate in Korea is equal to the real interest rate in Japan. c. Suppose the Bank of Korea increases the money growth rate from =.10 to = .12. If the nominal interest rate in Japan remains unchanged, what will happen to the nominal interest rate in Korea? (Hint: Remember the Fisher effect.) d. Draw a series of time-series graphs depicting how the increase in the Korean money growth rate would affect (1) the Korean nominal interest rate i,(2) the Korean price level P,(3) the Korean real demand for money Md=L(i)Y, and (4) the exchange rate E (won per yen)