Answer the following questions with a graphical analysis and a complete explanation. In each case, start from some initial market exchange rate of the Swiss franc versus the dollar. Fully illustrate and explain what happens in each case from the U.S. perspective. Each part below should be answered with a separate graph.

(a)There is an increase in interest rates in Switzerland.

(b)There is a decline in the U.S. rate of inflation.

(c)U.S. investors change their expectations regarding the Swiss stoc market, now expected greater returns in Swiss stocks in the future.

(d)U.S. interest rates increase, and at the same time the rate of inflation in Switzerland decreases.