(a) Outline two factors that affect the demand for a currency and two factors that affect its supply. (2 marks) (b) Imagine that the diagram below respresents the market for the Australian Dollar. Refer to this diagram in explaining what would happen to the value of the Australian Dollar if interest rates in Australia were suddenly reduced relative to their levels in the economies of our trading partners. (3 marks). ER ER SAUD DAUD Quantity of AUD