1. Assume that the real interest rates in both Canada and India have been 5 percent. Now the real interest rate in India Increases to 8 percent. a. Using a correctly labeled graph of the foreign exchange market for the Canadian dollar show the effect of the higher real interest rate in India on each of the following: Supply of the Canadian dollar. Explain. The value of the Canadian dollar, assuming flexible exchange rates, b. Using a correctly labeled graph of the loanable funds market in Canada, show how the Increase in the real interest rate in India affects the real interest rate in Canada