Draw and carefully label the Euro-U.S. dollar foreign exchange graph as discussed in the textbook. Assume we are currently in market equilibrium. Illustrate using the graph how the equilibrium euro/dollar foreign exchange rate would be affected by the following events, holding all else constant. Use a different graph for each part. Explain in words why the equilibrium exchange rate changed. (9 points)

1. A decrease in US short-term interest rates while Euro interest rates were unchanged.
2. An increase in the Eurozone inflation rate relative to the US.
3. An increase in US productivity relative to the Euro Area.