Problem
Illustrate the FX market for the euro with an equilibrium exchange rate of .95 €/$. Suppose the US announces there will be an elimination of all restrictions on European imports after one month. Consumers and firms in the US expect cheaper EU products. Diagram how this announcement affects the current exchange rate. What happens to the current price of EU products in the US?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.