Draw the diagram for each event european interest rates

Reference no: EM13391449

Draw a foreign exchange market diagram for U.S. dollar ($) against Euro ( €). Illustrate and explain how each of the following events would affect the demand and supply of U.S. dollar against Euro and therefore the U.S. dollar exchange rate against the Euro. The events are not related. Draw a diagram for each event.

a. European interest rates increased relative to U.S. interest rates, ceteris paribus.

b. Investors lose confidence in European assets because of the financial crisis in Greece.

Reference no: EM13391449

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