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2. Determining long-term exchange rates Consider two countries, the United States and India, that trade with each other. Suppose that the price level increases in the United States, but it remains the same in India. The following graph shows the supply and demand for the Indian rupee in the United States before the price change. The vertical axis is the exchange rate of the rupee in terms of the dollar, and the horizontal axis is the quantity of rupees. Show how the change in the price level affects the equilibrium exchange rate by shifting one or both of the curves on the graph. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. (?) Supply Demand Supply EXCHANGE RATE (Dollars per rupee) Demand QUANTITY (Millions of rupees) appreciates or depreciates As a result of the price change, the U.S. dollar