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INTERNATIONAL FINANCE 1. Complete the following table. (Adjust as needed to complete your answer.) When completing each row, you should hold every other macroeconomic factor

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INTERNATIONAL FINANCE 1. Complete the following table. (Adjust as needed to complete your answer.) When completing each row, you should hold every other macroeconomic factor constant (unchanged). FX Market Activity Result for the (This should be described in terms of value of the Change participant activities and the reactions of U.S. dollar U.S. relative to supply and/or demand of currencies in the (depreciation or Macroeconomic Factor base FXM.) appreciation) Inflation Increase Depreciation Real interest rates Decrease Appreciation Exports Increase Depreciation Imports Decrease Appreciation Money Supply Decrease Political Risk Increase Domestic Income (wages): Be clear about how you are interpreting this factor.) Increase

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