Graphically demonstrate what happen to the exchange rate

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Reference no: EM131210269

Graphically demonstrate what would happen to the exchange rate in each of the following situations:

a. The U.S. trade deficit increases, ceteris paribus.

b. The U.S. trade deficit decreases, ceteris paribus.

c. Capital outflows increase, ceteris paribus.

d. Capital inflows increase, ceteris paribus.

Reference no: EM131210269

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