The United States and Mexico are trading partners. Assume that both have a zero current account balance. The United States has low ination, relative to that of Mexico. and is in recession. A. If the real incomes in Mexico increase, indicate how each of the following would be aected: a. The current account in the United States. Explain. b. The international value of the peso . Draw a correctly labeled foreign exchange graph illustrating the change in the value of the US dollar . Now assume that to combat ination, the central bank of Mexico sells bonds. \"that is the eect of the bond sales on each of the following: a. Nominal interest rates in Mexico b. Mexico's capital account Draw a correctly labeled aggregate demand and aggregate supply graph of the US economy in its original state, then show the change you indicated in part {1}). Label the long run Yf and equilibrium price level and output PLl and Y1 respectively. Then label the new equilibrium price level PL2 Now assume that the Mexican government engages in decit spending. Using a correctly labeled graph of the loanable funds market, show the eect of the decit spending. Based on your answer in part {e}, what is the e'ect on the business investment in Mexico? Based on your answer in part {e}, what is the e'ect on the international value of the peso relative to the US dollar