Use the model of demand for and supply of foreign currency to analyze the following scenarios: a.

Question:

Use the model of demand for and supply of foreign currency to analyze the following scenarios:
a. Impressed with the magnificent scenery from Vancouver during the coverage of the Winter Olympics, French and German tourists flock to the west coast of Canada. Explain the impact on the euro-Canadian dollar in the short run.
b. Driven by waves of national pride, consumers across the world (including in the United States), decide to buy home-produced products where possible. Explain how the demand and supply for dollars would be affected? What can you say about the impact on the equilibrium dollar Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...