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1) Assume inflation goes up in Mexico compared to the US: a) Will the supply for MXN/USD go up or down? Why? b) Will the

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1) Assume inflation goes up in Mexico compared to the US: a) Will the supply for MXN/USD go up or down? Why? b) Will the demand for MXN/USD go up or down? Why? c) Will the MXN/USD go up or down? 2) Assume Canada increases interest rates compared to the US: a) Will the supply of the USD/CAD go up or down? Why? b) Will the demand for USD/CAD go up or down? Why? 3) Will the USD/CAD go up or down? Assume that disposable income goes up in the US and that nothing changes in Japan: d) Will the supply JPY/USD go up, down, or remain unchanged? Why? e) Will the demand for JPY/USD go up, down, or remain unchanged? Why? f) Will the JPY/USD go up, down, or remain unchanged

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