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Suppose a country suddenly faces an unexpected temporary fall in planned investment, i.e. / drops temporarily. The country has a fixed exchange rate for its

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Suppose a country suddenly faces an unexpected temporary fall in planned investment, i.e. / drops temporarily. The country has a fixed exchange rate for its currency. Use a DD-AA diagram to answer the following (you do not need to show the diagram, but you do need to write in words what happens on it). a) Indicate any movement(s) of the curves on your diagram that can be observed as a result of this activity. Explain the reasons for the shift(s). b) What happens to the exchange rate, E, as a result? c) What happens to national income, Y, as a result

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