Complete the following assignment. Make sure to label all axes correctly and shifts. When you have completed the assignment submit to the Unit 5: Foreign Exchange Dropbox. Net Exports and Capital Flows: Linking Financial and Goods Markets in Unit 5 . ***Hint: Capital inflows increase the supply of loanable funds, resulting in the decrease in domestic real interest rate. Capital outflows decrease a nation's supply of loanable funds, causing domestic real interest rates to increase. *** Capital Flows Resulting from a change in Net Exports 1. Egyptian businesses have recently increased their imports of cashews from Tanzania. As a result, the Tanzania current account would move towards a surplus or a deficit? Along with that would Tanzania net exports increase or decrease? 2. Illustrate on two graphs how the change in exchange rates of the Tanzanian Shilling and Egyptian Pound will change as a result of the increase in Egyptian purchases or Tanzanian cashews. 3. Illustrate on a graph of the loanable funds market in Tanzania the changes that result from the Egyptian importation of Tanzanian cashews. Hint: Current account deficits are offset by financial account surpluses (capital inflow) while current account surpluses are offset by financial account deficits (capital outflow). 4. Assume that inflation in Greece begins to rise while prices in Qatar remain stable. Would the result of this be Greece's current account moving towards a surplus or a deficit and Greece's net exports increasing or decreasing? 5. Illustrate on two graphs how the change in exchange rates of the Greek Euro and the Qatari Riyal will change as a result of the increase in inflation rates. 5. Illustrate on a graph of the loanable funds market in Greece the changes that result from this change in the inflation rate. Hint: Current account deficits are offset by financial account surpluses (capital inflow) while current account surpluses are offset by financial account deficits (capital outflow)