1.Explain with the aid of a model graph , describe the effect of changes in domestic and foreign Interest rates on the equilibrium exchange rate D/Scurve

2.Use a supply and demand diagram to explain how a price floor could affect an economy ?

3.Use a supply and demand diagram to show how currency could appreciate in a floating exchange rate system?

4.Sketch a supply-demand curve to show how a supply-shock can both raise prices and reduce quantity supplied.