Within the mundell-Flemingassuming imperfect capital mobility, analyze the effects of a positive shock to money demand ( i.e., an increasing in the demand for money for given level, of income and interest rate). By using appropriate graph:

i) The effect of the shock on the income when fixed exchange rate. ( 5 marks)

ii) the effect of the shock on the income when the flexible exchange rate. ( 5 marks)

iii) compare your answer (i) and (ii), and give some conclusion. ( 5 marks)