Suppose that the relative supply of domestic products decreases while the relative demand does not change. (a) ) What will happen to the real exchange rate? Explain using a figure. (b) What will happen to the demand for real money balances in the domestic economy? Explain using a proper equation. What will happen to the average domestic price level? Explain using a proper equation. (Assume that there is no change in the money supply.) What will happen to the nominal exchange rate? Explain using a proper equation.