Suppose the U.S, government has just hired you to analyze the following scenario. Assume the U.S. agricultural industry grows concerned about the amount of fresh fruit imports to the United States, a practice that harms domestic producers. Industry experts claim that implementing a tariff on imports would reduce the size of the trade deficit. Complete the following exercise in order to help you analyze this claim. The following graph shows the demand and supply of U.S. doliars in a model of the foreign-currency exchange market. Shin the demand curve, the supply curve, or both to show what would happen if the government decided to implement the tanitf. Civen this change, the doligr The praph below depict the loanable funds market and the relationship between mal interest rates and the level of net capital outflow (wico) icaiculeted in terms of the Nexicen pese. The Maktet for Lownable Funde in Mexico Mexican Net Capital Outhiow Corrpletis the first row of the table to reflect the state of the markets in Mexica. unitabie, they fecide to pull a porpon of their astets out of Mesico and put them inte more stable econsmies. This unempected ahock to the demand far assets in Nercico is knoen as capilal fight. Complete the first row of the table to reflect the state of the markets in Mexica. Suppose now that a sudden bout of political turmeil in Mexico causes world financial marknts to become uneasy. Because inwestors now see Mexico as unstable, they decide to pull a portion of their assets out of Mexico and put them into more stable economies. This unexpected shock to the demand for assets in Mexico is known as capital flight. Shift the NCO curve to Illustrate the effect of capital Aight. Then, on the graph representing the market for loanable funds, shirt the supply carve, the demand curve, or both curves to reflect the change caused by the shirt in NcO. Note: You will not be graded on your final placement of the curves on the graph, but you will need to shift them correcthy in order to ansiner the quesvions that folliaw. Determine the equilibrium interest rate after capital fight occurs, and enter it into the second row of the table. Then detevmine the level of nco that occurr along the new NCO curve at the new equinorim interest rate. Finain, show the effect of the change in nco on the market for foreign exchange by shifting either the suppiy curve, the demand curve, ar both. Determine the equinbrium interest rate after capital hight occurs, and enter it into the second row of the table. Then determine the lovel of Nco that occurs along the new NCO curve at the new equilibrium interest rate. Finaly, show the effect of the change in NCO on the market for foreign exchange by shifting either the supply curve, the demand curve, or both