A 5. Currency War [15 points] A 'currency war" refers to a situation where a number of countries seek to deliberately depreciate the value of their domestic currencies in order to keep a high nominal exchange rate EH/F . Using your knowledge about the nominal exchange rate, and their effect on exports and imports, explain why a country might be interested in depreciating the value of its domestic currency. Do not forget to explain how the nominal exchange rate affects the trade balance (the difference between exports and imports) and the level of economic activity. Support your answer with an equation of the real exchange rate. Recall that Y = C + I + G + Exp - Imp