Suppose an economy’s productivity growth rate increases, causing the prices of its exports to fall,.

Suppose an economy’s productivity growth rate increases, causing the prices of its exports to fall, the quantity of its exports to rise, and its current account balance to move from a deficit to a surplus. Using a supply and demand diagram, explain the effect of this increase in productivity growth on the country’s foreign exchange rate. If the country’s policymakers want to maintain the foreign exchange rate at its current value, what actions must they undertake?