I have done the work but I want to verify it is correct or if any more explanation is needed for my answers.

liNICo' Problem Solving Assignment: Balance of Payments and Exchange Rates Solve these two problems about aggregate spending: 1. Mexico discovers huge reserves of oil and starts exporting oil to the United States. Describe how this would affect the following: a. he nominal pesoUS. dollar exchange rate A Peso and the dollar exchange rate will depreciate as a whole dollar and will be able to buy less of a peso. b. Mexican exports of other goods and services When Pesos rise, a decrease in Mexican exports will occur because the oost of goods from Mexico will increase in currency. c. Mexican imports of goods and services While Pesos increase in value, more imports by Mexico due to purchasing of Mexican consumers will also increase. 2. A basket of goods and services that costs 51m in the United States costs 800 pesos in Mexico, and the current nominal exchange rate is 1G pesos per US. dollar. Over the next five years, the cost of that market basket rises to $1213 in the United States and to 1,2iJiJ pesos in Mexico, although the nominal exchange rate remains at 10 pesos per US. dollar. Calculate the following: a. The real exchange rate now and five years from now, iftoday's price index in both countries is 1DD U.5. Inflation: 12!]! 100 = 20% Mexico ination: REGIME: 50% Real exchange rate: 1:] peso per dollar Real exchange rate in 5 years: 1.5.41.2 \"'10: 12.5 pesos per dollar b. Purchasing power parity today and ve years from now PPP now: BDDDD: S peso per dollar PPP in 5 years: 12DDI12I1= 1i] peso per dollar