Question 5 8 pts Explain, under a flexible exchange rate regime, if each of the following events cause Japanese yen to appreciate or depreciate against the dollar: (a) Japanese inflation rate rises relative to the U.S. inflation rate: Will Japanese yen appreciate or depreciate? (b) An increase in U.S. GDP relative to Japanese GDP: Will Japanese yen appreciate or depreciate?Question 6 4 pts How is supply of one currency (euro) in the exchange market related to demand for some other currency? Question 7 4 pts Bond prices and the interest rate are inversely related. Explain how a decrease in the money supply will affect interest rates in money market, and bond prices in the bond market