Currencies in Europe, China, and the US: a. An article in The Economist from December 11, 2021 titled \"Buttonwood: Top dollar\" states: \"It is easy to forget, but other central banks get to do monetary policy, too. A recovering euro-zone economy might easily stir the hawks at the European Central Bank Even the hint of an interest-rate rise in the euro zone could be a gamechanger for currency markets.\" Think about the foreign-exchange market where the euro trades against the dollar. How could a hint of an interest-rate rise in the euro zone strengthen the euro's exchange rate in this market? In particular, in which direction would such a hint move the D curve representing the demand for euro in this market, and why would it move the curve? Explain. [1 line] b. The same article also states: \"China is leaning towards a looser monetary setting, as policy makers grapple with distress in the property sector. This week's reduction in reserve requirements might even be a hint that Beijing would prefer a weaker yuan.\" Think about the foreign-exchange market where the yuan trades against the dollar. How could a looser monetary policy in China weaken the yuan's exchange rate in this market? In particular, in which direction would such a loosening move the D curve representing the demand for yuan in this market, and why would it move the curve? Explain. [1 line] c. Why would Beijing prefer a weaker yuan? List at least one possible reason. [1 line] d. The same article also states: \"The dollar's current strength is tied to American exceptionalism of a sort. The S&P 500 index of leading shares consistently outperforms the stockmarkets of other countries. America's economy has proved to be a reliable source of growth. It has emerged from the pandemic more strongly than just about anywhere else.\" According to this quote, how could have scal policy in the US over the past two years contributed to a strong dollar? Explain. [1 line]