The exchange rate of the euro (E) vs. a basket of major foreign currencies (FC) in 2023 was e (FC/E) =3.5. The ECB (European Central Bank) for an exchange rate of e(FC/E)=3.5 is forecasting for the Eurozone - for 2024- a trade account NX=40 and a capital account NCO=30. Use this information in answering the following 4 questions. Question 27: If the ECB does not intervene in the foreign exchange market what should happen to the exchange value of the Euro? a. Stay the same b. decrease c. increase d. hard to tell Question 28: If the ECB wants to maintain the exchange value of the euro at e(FC/)=3.5 what is the required intervention? a): decrease bank reserves by 70 b): Increase spending by 30 c): decrease in interest rates d): Increase the OFR by 10 e): buy dollars in the foreign exchange market f : Increase interest rates Question 29: If the ECB refrains from intervention in the foreign exchange market or the domestic market, what will likely happen to interest rates in the short run? a): : decrease c): stay the same d ): hard to tell