Part II (10 points) Assume in this part that prices are sticky and PPP does not hold. Suppose there is a permanent reduction in the money demand with no change in money supply. a. Fill in the boxes with an "T" if increases, "I" if decreases, or "x" if no change. Price level Variable Short-run response Long-run response P Interest X Rate R Exchange E M (money supply) X X M/P (real money supply)