In 2019, an article in the Wall Street Journal reported on a speech by Mario Draghi, who was then president of the European Central Bank: 

Mr. Draghi said additional monetary stimulus would be required if eurozone inflation doesn’t improve.  .  .  .  The euro fell 0.2% against the dollar in response to the European Central Bank chief’s speech.

a. What did Draghi mean by “additional monetary stimulus”? Why would the value of the euro decline against the dollar as a result of investors expecting additional monetary stimulus from the European Central Bank? 

b. Draw a graph of the demand and supply of U.S. dollars and show the effect of Draghi’s speech on the foreign exchange value of the dollar. Briefly explain what is happening in your graph.