pls see attached

Draw a foreign exchange market diagram to show equilibrium with a fixed exchange rate. Suppose the initial exports X is $120, the supply curve is given by er = 0.01X, and the demand curve is given by er = 2.4 - 0.01X. a) Plot the supply and demand curves of the foreign exchange market. Plot the new supply curve if the supply of US dollars increases at all levels of exports by $10. Demand Curve Demand Curve Supply Curve New Supply Curve 1.57 Exchange rate 0.57 0 20 40 60 80 100 120 140 160 180 Reset US dollars b) How does the increase in exports affect the current account balance and conditions in the foreign exchange market when the exchange rate is fixed? The increase in exports (Select One) the balance on current account in the balance of payments and (Select One) the supply of foreign exchange in the foreign exchange market. In the diagram the increase in the current account balance, measured in Canadian dollars is $ 0 . The supply curve shifts to the (Select One).c) The purchase or sale of foreign exchange reserves is required if the central bank defends the fixed exchange rate. Explain the bank's decision. To defend the fixed exchange rate at ERO the central bank (Select One) foreign exchange from the (Select One) (Select One) the difference between the market supply and demand at the fixed rate ERO. d) What are the effects on the holdings of official reserves and the monetary base? The central bank sale of US$ would (Select One) holdings of (Select One)