Suppose there are two countries—the United States and Germany—in a trade agreement. You are analyzing the impact of the recession in the United States on the foreign currency market. How would a recession in the United States affect the market equilibrium exchange rate (dollar price of the Deutsche mark) and quantity of the Deutsche mark change? Within your essay, please address the concept below.
What factors shift the supply and the demand curve for foreign currencies?
Answer this using graphical analysis. Within Microsoft Word, you can insert graphs as a way to illustrate your graph. Please refer to pages 400–401 of your course textbook for a visual. The vertical line should be the dollar price of the mark, and
the horizontal axis should be the quantity of the mark.
Your APA-style essay should be a minimum of 500 words in length, not counting the title and reference pages. You are required to use a minimum of two sources; at least one source must come from the CSU Online Library (one source may be your textbook). All sources used, including the textbook, must be referenced; paraphrased material must have accompanying in-text citations.
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