Q3. A) a. Explain why a stronger Pakistani Rupee could enlarge the balance-of-trade deficit. Explain why a weaker PKR could affect the balance of-trade deficit. b. It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any current account deficit. Explain why this adjustment would occur c. Why does the exchange rate not always adjust to a current account deficit? B) If the direct exchange rate of the euro is worth $1.25, what is the indirect rate the euro? That is, what is the value of a dollar in euros? Assume Poland's currency (the zloty) is worth $.17 and the Japanese yen is wort $.008. What is the cross rate of the zloty with respect to yen? That is, how many equal a zloty