Question: Question 3 6 pts Explain how the following events affect variables 1 through 3: other things unchanged. Event: The Fed sells Chinese currency, yuan, to

 Question 3 6 pts Explain how the following events affect variables

Question 3 6 pts Explain how the following events affect variables 1 through 3: other things unchanged. Event: The Fed sells Chinese currency, yuan, to purchase dollar from the foreign exchange markets: Variable 1: Supply of dollar in the foreign exchange markets ___________________ (increase, decrease, not changed: briey explain). Variable 2: Value of dollar in the foreign exchange markets _____________________ (appreciate, depreciate, unaffected; briefly explain). Variable 3: American goods exported to China ___________________ (increase. decrease, not change: briey explain)

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