Question 6 20 pts Note: Many questions will use the same set of equations. The economy of Colombia is characterized by the following relations. An IS Curve Yt = a - b(Rt - F) A Fisher equation: Rt = it + ft - Ett+1 A monetary policy rule: it = T + m(nt - 7) + Ett+1 A Phillips curve: It = Et-int + vYt An assumption for inflation expectations: Et-1 7it = Tit-1 Where ft is a shock to interest rate spreads. ft takes positive values when banks are having financial distress in their balance sheets. Question: Will ft appear directly in the aggregate demand (AD) or in the aggregate supply (AS) curve? O Aggregate Supply (AS) O Aggregate Demand (AD) None of the other answers is correct O in Both the AD and AS curves