1) Suppose that political unrest in Egypt leads financial markets to anticipate a depreciation in the Egyptian pound. How will that affect the demand for pounds,supply of pounds, and exchange rate for pounds compared to U.S. dollars? 2) How has COVID impacted exchange rates in Liberia? 3) How would a contractionary monetary policy affect the exchange rate, net exports, aggregate demand, and aggregate supply? 4) A central bank can allow its currency to fall indefinitely, but it cannot allow its currency to rise indefinitely. Why not? 5) Is a country for which imports and exports comprise a large fraction of the GDP more likely to adopt a flexible or fixed exchange rate? Explain. 6) Does a higher inflation rate in an economy, ceteris paribus, affect the exchange rate of its currency? Explain. 7) Explain the purchasing power parity exchange rate. 8) Explain the reasons why a central bank cares about the exchange rate. 9) What is the difference between a floating exchange rate, a soft peg, a hard peg, and dollarization? 10)List some advantages and disadvantages of the different exchange rate policies