The Monetary Authority of Hong Kong (the Central Bank) has fixed the Hong Kong dollar to the U.S. dollar. Due to rising inflation the Federal Reserve has decreased the U.S. money supply. What effect would this action by the Fed have on the Hong Kong dollar? How should the Monetary Authority of Hong Kong respond to this change in the exchange rate? Explain using the DD/AA model. How would this action by the Monetary Authority affect Hong Kong's GDP? Explain. You can add graphs for extra credit