Question: Using the diagram on the right, show what effect a revaluation will have on the current account. Note: 'E' = Egi: Exchange rate, E 1)

 Using the diagram on the right, show what effect a revaluation

Using the diagram on the right, show what effect a revaluation will have on the current account. Note: 'E' = Egi: Exchange rate, E 1) Using the line drawing tool, shift any lines, making sure to label them appropriately. 2) Using the point drawing tool, label new equilibrium "B". DD The sample correct answer is drawn for the case of devaluation. XX Carefully follow the instructions above and only draw the required objects. A AA Output, Y Using the diagram on the right, show what effect a revaluation will have on the current account. Note: 'E' = Egi: Exchange rate, E 1) Using the line drawing tool, shift any lines, making sure to label them appropriately. 2) Using the point drawing tool, label new equilibrium "B". DD The sample correct answer is drawn for the case of devaluation. XX Carefully follow the instructions above and only draw the required objects. A AA Output, Y

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