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1- Assume that you are back in a system of fixed exchange rates and that you own a lot of Mexican pesos. A 2- What

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1- Assume that you are back in a system of fixed exchange rates and that you own a lot of Mexican pesos. A 2- What will happen to the dollar/euro exchange rate if Europeans decide to dump a lot of the US securities they have purchased over the years? (2 marks) 3- If the Japanese yen appreciates relative to the dollar, are you more likely to buy a new American automotive brand or a japenese automotive brand? (1 mark) 4- If the Brazilian government prints significantly more brazilian reals, what will happen to the dollar/real exchange rate? (1 mark)

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