1.Explain in detail what happens if inflation in U.S is higher than elsewhere. Give example of a situation if this occurs, what happens to the demand and supply graph between U.S and France.

2.A new model of Jeep, made in America, is successful in sales in Germany (taken here to be still using the Deutsche Mark (DM). Explain in detail the shifting of the supply and/or demand curves for currency. explain whether the indicated currency appreciates or depreciates as a result of the change.