Question 5 (21 points) Use the IS-LM-FX diagram to show what happens in each of the following situations. Label the original equilibrium point 1 and the new equilibrium point 2. State the effect of the policy change on the following variables (i.e., increase, decrease, no change, or ambiguous): Y, i, E. (a) (7 points) There is a monetary contraction under a floating exchange rate. (b) (7 points) There is a monetary expansion under a fixed exchange rate. (c) (7 points) There is a fiscal contraction under a fixed exchange rate. believed that the po