29. Using supply and demand, what are the effects on the US dollar exchange rate of the following: a) If there is an increase in US exports, then the demand for U.S. dollar also increases. This means that the dollar will appreciate compared to other countries and exchange rate decreases. b) If there is a decrease in US imports, the demand for foreign currency also decreases relative to the dollar. This means that the dollar will again appreciate and exchange rate decreases. c) If there is an increase in French purchases of US Treasury bonds, then the demand for dollar increases relative to Francy. This is because U.S. Treasury bonds can only be purchased with the US dollar. This is another example of the dollar appreciating and exchange