Just do E,F,G,H. Complete all 4 thoroughly. I uploaded the answers to the previous part also. Please complete all 4 parts; will give you a thumbs up! Thank you!

(e) If the United States began with a current account balance of zero, will the change in part (c) result in a current account surplus, deficit, or no change? Explain. (f) Based on your answer to part (e), what must be the change to the capital and financial account of the United States? (g) Assume the final exchange rate for the Mexican peso is $0.05. Calculate the exchange rate for the dollar in terms of the peso. (h) Assuming efficient production and mutually beneficial trade, where would consumption for the United States and Mexico be relative to their respective production possibility curves-inside, on, or beyond the PPCs? Explain. C Download demand and supply curves intersect each other at point e and hence the equilibrium exchange rate is determined as ei = $0.20 per yuan. c) The foreign exchange market for pesos. 1 Enchong Rate Di Quantity of Pital We can see from the graph that the initial equilibrium exchange rate was r. But as the demand for pesos increased the demand curve shifted to the right from D to D1 ato hence the new equilibrium takes place at e' and hence as a result the exchange rate increases from r to r1. This means that now the pesos has become costlier, we have to give more dollars to get one pesos than before. d) From part C we can see that since the pesos has become costlier i.e. it has appreciated so the U.S. Dollar is depreciating, it is now less valuable. * Please post other questions separately. Chegg Policy