In the early months of the COVID-19 pandemic, the $US increased due to a rush to safety in the global economy. Since then, the $US has weakened about 10% overall. For now we wont worry about the reasons for this, but the graph is above.

Using the Z-Y and NX-Y combined graph on the next page, what should be happening as a result of the $US weakening? Show the shifts on the graph itself.

FRED 127.5 Trade Weighted U.S. Dollar Index: Broad, Goods and Services 125.0 1225 120.0 117.5 Index Jan 2006=100 1150 1125 110.0 107.5 105.0 2016-01 2016-07 2017-01 2017-07 2018-01 2018-07 20 19-01 2015-07 20 20-01 0 20-07 Source: Board of Governors of the Federal Reserve System (US) myf.red/g/yog! N - Y, ZZ NX, $US falls 45 NX Yo Y Yo 0 NX. Y NX FRED 127.5 Trade Weighted U.S. Dollar Index: Broad, Goods and Services 125.0 1225 120.0 117.5 Index Jan 2006=100 1150 1125 110.0 107.5 105.0 2016-01 2016-07 2017-01 2017-07 2018-01 2018-07 20 19-01 2015-07 20 20-01 0 20-07 Source: Board of Governors of the Federal Reserve System (US) myf.red/g/yog! N - Y, ZZ NX, $US falls 45 NX Yo Y Yo 0 NX. Y NX