ich of the following main D 1.[4 points] Crude oil is an important input for many industries around the world. Over the past one year, the crude oil price has risen steadily in the world market. Based on the AS-AD model you studied, explain clearly how the rise in the crude oil price could affect an oil importing economy like India or China in the short run, all else equal. In addition, draw an appropriate AS-AD diagram to support your explanation, assuming that the economy does not produce any crude oil. 2. [3 points) Explain, on the basis of the demand and supply model for money you studied, three distinctly different causes for an increase in the interest rate in an economy in the short-run. 3. [4 points] Draw an appropriate diagram to show how a decrease in the money supply affects the interest rate in an economy in the short run, all else equal. In general, what is the mechanism by which the money supply decreases