Problem
Other things equal, how would you expect the following shifts to affect a currency's real exchange rate against foreign currencies?
a. The overall level of spending doesn't change, but domestic residents decide to spend more of their income on non-traded products and less on tradables.
b. Foreign residents shift their demand away from their own goods and toward the home country's exports.
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.