How would each of the following developments affect the exchangerate of the US dollar (state whether the US dollar will getstronger or weaker)? Support your answer discussing the effects onthe demand and supply of a foreign currency or dollars and usingappropriate diagrams.
a. Increase in the expected inflation rate in the economies ofUS trading partners
b. Increase in the expected future exchange rate (US $ isexpected to grow stronger)
c. Americans are traveling less abroad because of the Covid 19situation
d. The European Union interest rate rises relative to the USinterest rate
e. Less foreign tourists are coming to the Florida beach forfear of covid 19.