$2.$Draw a graph of the supply of and demand for the Mexican peso by the U$.$S$.$ market. Diagram the effect of each of the following on the exchange rates $($specify whether the U$.$S$.$ and Mexican peso appreciate or depreciate$),$ and state in words whether the effect is long, medium, or short run.$(9$ marks$).$

a$.$A rise in U$.$S$.$ interest rates.

b$.$A recession in the United States.

$3.$Jordan fixes its national currency the dinar $($or JD$)-$ against the US dollar. Assume the fixed rate is $0\mathrm{.}71$ dollars per JD$.(5$ marks$).$a$.$Draw a supply and demand diagram illustrating the market in which Jordanian dinars are traded for U$.$S$.$ dollars, assuming that the equilibrium exchange rate is $1$ dollar per JD $($in your supply and demand diagram put the number of dinars per month on the horizontal axis$)$

b$.$At the fixed rate assumed above, would the Jordan central bank be buying or selling Jordanian dinars in the market? Indicate the number of dinars per month that the central bank must buy or sell as a distance on your graph

$.$c$.$Based on the situation as described above, could Jordan continue to fix its currency at $0\mathrm{.}71$ dollars per JD forever? Why or why not?

$4.$As in question $3,$ note that Jordan fixes its national currency $-$ the dinar $-$ against the U$.$S$.$ dollar at $0\mathrm{.}71$ dollars per JD$.(5$ marks$).$a$.$Draw a supply and demand diagram illustrating the market in which Jordanian dinars are traded for U$.$S$.$ dollars assuming that the equilibrium exchange rate is $$0\mathrm{.}5$ per JD $($put the number of dinars per month on the horizontal axis$).$

b$.$At the fixed rate assumed above, would Jordans central bank be buying or selling Jordanian dinars in this market? Indicate the number of denars per month of the central bank must buy or sell as a distance on your graph

$.$c$.$Based on the situation as described above, could Jordan continue to fix its currency at $0\mathrm{.}71$ dollars per JD forever? Why or why not?