a. Suppose that the PST appreciates relative to the EUR. For the following parts, you will not receive anycredit without providing an explanation.(i)
In the UK:
How would the export demand change? Why?-
How would the import demand change? Why?
How would net exports change? Why?
(ii) In the rest of Europe:
How would export demand change? Why?
How would import demand change? Why?
How would net exports change? Why?