Consider the two country (Canada and Germany) model of exchange rate determination discussed in class with short-run price rigidities and in which money market equilibrium holds every period, Uncovered Interest Rate Parity holds every period, and PPP holds in the long-run. Assume that the Canadian economy is initially in equilibrium. Explain both the short, and long run effects of a permanent increase in the Canadian money supply on Canadian real money supply, Canadian interest rates, Canadian price levels, German interest rates, Germany price levels,, and the exchange rate (from the Canadian perspective) Esie) Assume there are no changes in the German money supply and Canadian real output is constant. Support your answer with a graph of the Canadian money market equilibrium and a graph of the foreign exchange market equilibrium for both the short run and long run