5. Factors affecting exchange rates The following graph depicts the foreign exchange market for euros. The blue line represents the demand curve for euros, while the orange line represents the euro supply curve. Suppose that real interest rates in France suddenly increase, while real interest rates in the United States remain stable. Use the graph to show what happens in the market for euros and then answer the question that follows. (Note: The changes made to the graph will be graded.) ? Market for Euros D S S VALUE OF EURO (U.S. dollars per euro) D decrease QUANTITY OF EUROS increase As a result of this, the value of the euro is expected to