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4) Consider an open economy with a credible pegged exchange rate regime, in its medium run equilibrium. (Total 26 points) a) In a wellmarked graph of IS/LM, AS/AD and UIP curves, show the initial equilibrium and short run equilibrium, if foreign income falls. (Only a complete graph). (5) b) In a step by step way and in a right order explain how all variables change in the short run. (8) c)- In the ne_w graph repeat your graph in part (a), and add the structure of the curves in the new medium run equilibrium. (Only a complete graph). (3) d) In a step by step way and in a right order, explain how variables change in medium run. (5) e)- In this part suppose the economy has a exible exchange rate regime. In a well-marked graph, explicitly show the initial, short run, and new medium run equilibrium points, if the same shock in part (a) happens. (Only a neat and complete graph)