1. What is the impact of an appreciation of the USD on

U.S. exports

U.S. imports

The dollar value of U.S. investments in the foreign country (and denominated in the foreign currency)

The foreign currency value of foreign investments in the U.S. (and denominated in dollars)

Answer all of the above with a simple or

2. Suppose there is a large increase in the income level in Mexico and a much smaller increase in the U.S. income level. Everything else equal, what is likely to happen to value of the MXN?