Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 32

Suppose there is major unrest in the labor market in the U.S., making European investors nervous about investing in the U.S.
a. Draw the supply and demand curves for U.S. dollars, and show the appropriate shift(s) in supply and demand for U.S. dollars associated with the labor unrest.
b. Did the value of the U.S. dollar depreciate or appreciate?