Don't have to show any work.

Horne and Foreign are in their respective long-run equilibrium. Both countries have the same Lat interest rate, which is 3%. Initially, the monetary growth rate in Foreign is 7%, which is one percentage point higher than domestic monetary growth rate. Velocity of money is held xed in both countries, and they also enjoy the same output growth rate, which is 2%. At To, the central bank of Home revises its monetary policy and wants to set its ination rate to be 1 percentage points higher than foreign ination rate after To via a change in the monetary growth rate. Use the monetary approach for the case of ongoing ination to answer the following questions: - What should be the monetary growth rate {96 change in MS) chosen by Home's central bank at T0? - Find the new domestic ination rate after Tu. - Is domestic currency expected to appreciate or depreciate after To? At what rate? Support your answer with the diagrams for the time paths of MS. R, P and E. Note: 1. Make sure to include numbers in your diagrams and you will be asked to upload your diagrams in the nextquestion. You are NOT required to provide written explanation when uploading your diagrams. 2. DO NOT click the next button until you have completed the question. including drawing your diagrams. You will not be able to view the actual question again when you are asked to upload your diagrams. Answers: - For numerical answers, just enter the numbers {i.e.. no unit of measurement, no comma). Keep your answer to the nearest integer. - For example, if prot= $5,125 .just enter "5125" in the answer box 0 Mm between the negative sign and the number. 0 DO NOT enter " $5125" or " 5,125" or "profit = 5,125". etc.; otherwise, the system will mark you wrong & you won't receive marks. Before To, domestic currency is expected to l | [appreciate/depreciate/ no Change} at rate of; _% [Keep your answer to 1 decimal place if needed). Domestic monetary growth rate chosen at T0 = I96 (Keep your answer to 1 decimal place if needed]. Domestic ination after To : l ,96 {Keep your answer to 1 decimal place if needed). After To. domestic currency is expected to (appreciate/depreciateo change) at rate ofl I96. [Keep your answer to 1 decimal place if needed). Keep all numbers in 56 form (i.e., if monetary growth rate = 20%. then enter 20 in the answer box}