_ 20. Consider the following gure. It shows the demand and supply curve of dollars and the determination of the peso-dollar exchange rate. The black curves represent the original positions of the demand and supply curves. y'! Q. If assumptions of the purchasing power parity theory hold, which of the following can cause a rightward movement of the dollar demand curve and a leftward movement of the dollar supply curve as shown in the gure? a. An increase in the spot exchange rate above the PPP level b. When the cost of the market basket in Mexico is higher than that in the U.S. c. An increase in the spot exchange rate above the equilibrium level satisfying the current account balance in both countries d. When the ratio of the market basket costs, CBp/CB$, is lower than E1p /$, the original spot rate e. A domestic currency revaluation effort by the Mexican government