Explain how each of the following events affect the (i) Demand for AUD (Australian Dollar), (ii)Supply of AUD and (ii) Exchange rate (value of AUD relative to other currency)Hint: You must analyse from the perspective of Australia and Australian dollars relative to othercurrencies).

a)Suppose that Australia experiences an economic expansion, which causes a rise in income in the inAustralia relative to the European Union.

b)Suppose Australia decrease their interest rates relative to the rest of the world.

c)Suppose speculators believe that the value of the other currencies will be hicher in the future relative to theAustralian currency.

d)Suppose the rest of the world faces relatively high inflation compared to Australia.