(a) The following figure (Figure 2.1) shows the effect on the exchange rate if the domestic growth rate is relatively higher than the foreign growth rate from the current account perspective. Figure 2.1 You are required to provide a step-by-step analysis of the shifts and movements of the demand and supply curves. State any appropriate assumptions to support your answer. You should provide explanations for each shift or movement as well as the net change in the exchange rate. You may copy the figure to your answer booklet and include your annotations on it. (8 marks)