Use the US money market and US FX diagrams (that is, where Domestic Return is the US nominal rate) to answer the following questions about the relationship between the Euro (E) and the US dollar ($). The exchange rate is in US dollars per Euro, Egg. We want to consider how a change in the Euro real income affects interest rates and exchange rates. On all graphs, label the initial equilibrium point A. a) [5 points] Illustrate how a temporary increase in the Euro real income affects the U.S. money market and US PX market. Label your short-run equilibrium point B and your long-run equilibrium point C. b) [3 points] Using your diagram from (a), state how each of the following variables changes in the short run (increasefdecreasefno change relative to their initial values at point A): U.S. interest rate, Euro interest rate, Em, expected EM, and the US price level. c) [2 points] Using your diagram from (a), state how each of the following variables changes in the long run (increase/decreasefno change relative to their initial values at point A): U.S. interest rate, Euro interest rate, Em, expected Em, and the US price level