Every month, the Conference Board of Canada poses four attitudinal questions to a random sample of Canadian households. The four questions are: (1) Considering everything, would you say that your family is better or worse off financially than six months ago? (2) Again, considering everything, do you think that your family will be better off, the same or worse off financially six months from now? (3) How do you feel the job situation and overall employment will be in this community six months from now? (4) Do you think that right now is a good or bad time for the average person to make a major outlay for items such as a home, car or other major item? Based on the answers to these four questions, the Conference Board of Canada computes the monthly Index of Consumer Confidence. When confidence rises, consumers tend to increase their purchases and reduce their savings. Between January and February 2020, the index rose by 5% and reached its highest level since August 2019. Use the long-run model of a small open economy (from chapter 5) to illustrate graphically the impact of this increase in consumer confidence on consumption, Canadian loanable funds, the CAD-USD exchange rate and the Canadian trade balance. Currently, Canadian net exports are negative. Be sure to label: i. the axes ii. the curves iii. the initial equilibrium values iv. the direction the curves shift v. the new long-run equilibrium values. Draw the graphs by hand on paper. Include the following graphs: consumption function, the market for Canadian loanable funds and the market for CAD.