QUESTION 2 (3n MARKS} a. Government officials, business managers as well as speculator use forecasts to determine fiscal and monetary policies and plan future operating and investing activities. The value of dollar today could be affected when economist forecast the future interest rates. However, some forecast by respected economist would not have impact on today's value of the dollar. Discuss. (7 marks) b. Based on the income level, the US. income level rises at a much higher rate than does the Singapore income level. Other things being equal, how should this affect the (a) the US. demand for Singapore dollars, (b) the supply of Singapore dollars for sale, and (c) the equilibrium value of the Singapore dollar? Illustrate with graph. (17 marks)