Consider Figure 1 - a graph of the supply and demand for the Peruvian currency, the sol. According to Figure 1, the long run equilibrium price for one Peruvian sol is US $0.27.

2. ConsiderFigure 1- a graph of the supply and demand for the Peruvian currency, the sol. According to Figure 1, the long run equilibrium price for one Peruvian sol is US $0.27.

If long run economic fundamentals change and Peruvians want to buy less US or other foreign goods the supply curve in Figure 1 will ______________________. If after that shift of the supply curve the exchange remains at US $0.27 there will be ________________ for the Peruvian sol.

3. ConsiderFigure 1- a graph of the supply and demand for the Peruvian currency, the sol. According to Figure 1, the long run equilibrium price for one Peruvian sol is US $0.27.

If long run economic fundamentals change and the demand curve shifts to the right and the supply curve shifts to the left the US dollar will ___________________________________

4. ConsiderFigure 1- a graph of the supply and demand for the Peruvian currency, the sol. According to Figure 1, the long run equilibrium price for one Peruvian sol is US $0.27.

If long run economic fundamentals change and the demand curve shifts to the left and the supply curve shifts to the right at the new equilibrium exchange rate the US dollar will have __________________________

5. The domestic currency value of the return on a foreign investment when the foreign currency proceeds are sold in the forward market, is defined to be the

6.