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please answer the following questions to the best of your ability In answering the question, you should emphasize the line of reasoning that generated your

please answer the following questions to the best of your ability

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In answering the question, you should emphasize the line of reasoning that generated your results; it is not enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. Supply of Canadian Dollars WON/CANADIAN DOLLAR (D in Demand for Canadian Dollars 0 0' QUANTITY OF CANADIAN DOLLARS Assume that South Korea and Canada are trading partners The equilibrium exchange rate between the Canadian dollar and the South Korean currency, the won, is shown in the graph of the foreign exchange market, above a. Explain how each of the following will affect the demand for the Canadian dollar' i. The ination rate in Canada is higher than the ination rate in South Korea. ii. Real interest rates in Canada fall relative to real interest rates in South Korea b. Given your answer to part (a)(ii). indicate how the value of the Canadian dollar is affected. 0. As a result of the currency change in part (b), what will happen to Canadian exports to South Korea? Explain

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