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a)Consider the case in which spot exchange rate is too low than PPP exchange rate? Show the change in the spot exchange rate on a

a)Consider the case in which spot exchange rate is too low than PPP exchange rate? Show the change in the spot exchange rate on a graph. Make sure to name all the axes, lines and show the equilibrium points. Please explain the reason the shifts on the graph.

b)Consider the case in which spot exchange rate is too high than PPP exchange rate? Show the change in the spot exchange rate on a graph. Make sure to name all the axes, lines and show the equilibrium points. Please explain the reason the shifts on the graph.

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