(d)Using the money market, illustrate what happens if income in the economy decreases.

(i)Assume the central bank responds to the decrease in economic activity by undertaking expansionary policy. Illustrate the impact on the money market.

(ii)Explain how the expansionary policy in part (i) should transmit into the product market and boost economic activity.

(iii)If the domestic economy slides into a recession as a result of the COVID-19 crisis, will the above policy action work? Why? Why not?Explain in detail.