Suppose that the United States and Sweden are on a floating exchange rate system. Explain whether the following events would cause the Swedish krona to appreciate or depreciate.

Illustrate EACH explanation with a graph of the market for Swedish krona and make sure to explain which curve(s) shift(s) and WHY.

Each answer should include the following:

(a) fully-labeled graph-- draw a separate graph

(b) an explanation of what is happening in the graph and WHY

(c) a conclusion of whether the Swedish krona appreciates or depreciates.

Swedish multinational corporations dramatically expand their direct investment in the US, all else constant.