The Central Bank of Brazil (BCB) has adopted an inflation-targeting strategy. Consider this along with the net debtor status of the country as a whole. Why might the central bank be concerned with these fluctuations in its currency and the economic effects discussed in part (b)? Explain what the BCB could do to respond to economic conditions that result from the changing exchange rate and illustrate the effects of this policy action. (To answer this, you can use (1) the foreign exchange market for Brazilian real assets; (2) the MP curve, the market for money, or the market for bank reserves; along with (3) the AD/AS framework).