2. a. Use a diagram to discuss what the Reserve Bank of Australia can do if the current cash rate is below the target rate? What is the name of such an activity by the central bank? 5 marks b. What will be the possible change in the foreign exchange rate of Australian dollar due to the change in cash rate discussed in (a)? Discuss the pros and cons associated with such a change in the foreign exchange rate of the Australian dollar. 2. a. Use a diagram to discuss what the Reserve Bank of Australia can do if the current cash rate is below the target rate? What is the name of such an activity by the central bank? 5 marks b. What will be the possible change in the foreign exchange rate of Australian dollar due to the change in cash rate discussed in (a)? Discuss the pros and cons associated with such a change in the foreign exchange rate of the Australian dollar