Suppose that people at Home finally realize that they must save a larger portion of their income in order to retire and that they simultaneously begin to use new technology, which allows them to reduce their holdings of real cash balances as a proportion of their income. In addition, Home let the market forces of demand and supply to determine the value of its currency against foreign currency. In the context of the DD-AA model, what happens to output and exchange rate in the short run? Explain in words and in ONE diagram, and assume the changes are transitory.