Please show full working out and description for question iii c Could the central bank of alpha.... to gain both marks for this question. Thank you.

Alpha and Beta are two countries. Alpha uses dollars ($) and Beta uses pounds (f). Treat Alpha as the home country and define the bilateral exchange rate as the number of pounds that exchange for one dollar: e= fe | th The following table provides some annual exchange rate data. e 2016 0.6 2017 0.56 2018 0.50 2019 0.45(iii) Suppose the government of Alpha decided to fix the exchange rate in 2019 to its value in 2016. (a) Use a diagram to illustrate the foreign exchange market for Alpha in 2019. Describe any actions being undertaken by the central bank. (2 marks) (b) Suppose Alpha's currency was subject to a speculative attack in 2019. Explain what this would involve. (2 marks) (c) Could the central bank of Alpha defend the currency against the speculative attack? Explain whether there any costs of doing so? (2 marks)