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2. The foreign exchange market The following question focuses on the exchange rate between Brazilian reais and U.S. dollars, defined as the number of Brazilian reais you must pay for one dollar. Suppose that preferences for goods made in the United States change in Brazil, causing Brazilian consumers to purchase more goods and services made in the United States. Drag the appropriate curve(s) on the following graph to illustrate how this change affects the market for dollars. (? O Supply of dollars Demand for dollars Supply of dollars PRICE OF A REAL (In dollars) Demand for dollars QUANTITY OF DOLLARS A change in preferences that causes Brazilian consumers to buy more U.S.-made goods and services will cause the Brazilian real to relative to the dollar.PRICE Demand for dollars QUANTITY OF DOLLARS appreciate depreciate references that causes Brazilian consumers to buy more U.S.-made goods and services will cause the Brazilian real to relative to the dollar.4. Fixed exchange rates Consider the exchange rate between the Malaysian ringgit and the euro. Suppose the Malaysian government and the Eurozone governments agree to fix the exchange rate (ER) at 2.5 ringgit per euro, as shown by the grey line on the following graph. Refer to the following graph when answering the questions that follow. (? 4.0 3.5 3.0 Supply of Euros ER 2.5 EXCHANGE RATE (Ringgit per euro) 2.0 1.5 Demand for Euros 1.0 2 10 12 14 16 QUANTITY OF EUROS (Billions)At the official exchange rate of 2.5 ringgit per euro, the euro is overvalued , and the Malaysian ringgit is undervalued , which means that Malaysians pay more _ for European exports than they would with a free-floating exchange rate. At the official ringgit price of euros, there is a surplus * of euros in the foreign exchange market. Suppose the governments of the Eurozone and Malaysia reevaluate their currencies so that their official exchange rate is now 1 ringgit per 1 euro. This action results in depreciation _ of the euro