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. 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

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