Q2:(36 marks)Suppose that the demand for Chinesecellphones from the U.S.increases,but China's net capitaloutflow doesn't change.Answer this question using the openeconomy model from the Chinese perspective.a)What happens to the demand for RMB in the foreign currencyexchange market?(6 marks)b)What happens to the real exchange rate of RMB in the foreign-currency exchange market?Show your answer using a figure.(12 marks)c)What happens to Chinese net exports?Why?(6 marks)d)If Chinese are selling more cellphones,what must be trueabout Chinese imports and exports of other items?(6 marks)e)Keeping in mind your answers to (a)through (c),do you thinkChina runs an overall trade surplus with the rest of the worldbecause its cellphones are better made or because of itsnational saving and domestic investment?Explain.(6 marks)