Question 3 6 pts Explain how the following events affect variables 1 through 3: other things unchanged. Event: The Fed sells Chinese currency, yuan, to purchase dollar from the foreign exchange markets: Variable 1: Supply of dollar in the foreign exchange markets ___________________ (increase, decrease, not changed: briey explain). Variable 2: Value of dollar in the foreign exchange markets _____________________ (appreciate, depreciate, unaffected; briefly explain). Variable 3: American goods exported to China ___________________ (increase. decrease, not change: briey explain). Question 4 6 pts Explain how the following events affect variables 1 through 3, other things unchanged. Event: The Fed purchases Chinese currency, yuan, using USD (United States Dollar): Variable 1: Supply of yuan in the foreign exchange markets ____________________ (increase or decrease: briey explain). Variable 2: Value ofyuan in the foreign exchange markets _____________________ {appreciate or depreciate; briey explain}. Variable 3: Chinese goods exported to the U5. ___________________ {increase or decrease; briey explain}