Problem
(a) How a change in demand for a currency may cause the exchange rate of the currency against other currencies to fall?
(b) How a central bank might intervene in the foreign exchange market to prevent the decline in the exchange rate?
(c) Why the decline in the exchange rate may initially cause a deterioration in the current account of the balance of payments?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.