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(a) Home Money Supply, M M Growth rate, H + Au ....... Growth rate, u 1. Rate of growth of money supply increases...Question 2. This question pertains to money, interest rates, and prices in the long-un. Suppose we learn at time T that the rate of money supply growth increased from u to a higher rate u + Au. Explain the effect of this increase in the growth of money supply on in the nominal interest rate (i), real money balance (M/P), price level (P), and exchange rate (E). Explain your analysis by using graphs. Start with the following graph. Justify all changes in the variables. (40 points)<