II. TWO SHORT ANSWER QUESTIONS (Four Points Each) Note, Please show your work and clearly label your answers 6. Tiara, a small island nation, records the following balance of payments transacions. Please assemble a balance of payments accounts for Tiara, placing each item with the correct sign in the correct category (current account, capital account, or official reserve transactions). Ooserved transactions Exports of fish to the us, USD,000 Imports of services from New Zealand, USDECO Foreign direct Investment from the US into a lacal factory, USD200 Increase in USD fore an exchange reserves due to central bank intervention, USDISO A local company borrows from abrosd, USD20o 7. You think your compeny should expand into Atiantis, a small isiend country somewhere in the Atientic Ocean. You need to pitch the ides to your boss, wwho hes never travelled cutside the United States. You realize ou need to start the presentation with the overview of the country, including en outlook for Atlantis' currencv, the Atlanta. Atlantis is running a current account surplus or 8% of GDP After talking to your economist friends, you believe that the surplus should be around 2% or GDP.You estimate that a 8% depreciation or the Atlanta would improve the current account by 2% of GDP. Is Atlantis currency undervalued or overvalued By how much? Please briefy explain your condusions