please answer these two questions with good explanation and graph

7. Show and explain the implications of the following on the balance of payments curve: a. Domestic prices are falling. b. The exchange rate is rising. 8. You are an economic advisor in Country thich adopts a flexible exchange system and capital flows are imperfect and less responsive to interest rate. If the country wants to increase its output level, is there an expansionary monetary or fiscal policy that needs to be