Please provide the authentic solution of this problem.
Part I
Question 1. Analyze the concept of exchange rate:
Question 2. Explain how the dollar price of euros is determined.
Question 3. Identify a factor that can increase the dollar price of euros.
Question 4. Identify a factor that can decrease the dollar price of euros.
Question 5. Explain why a rise in the dollar price of euros means a fall in the euro price of dollars.
Question 6. Explain the purchasing-power-parity theory of exchange rates, using the euro-dollar exchange rate as an example.
Part II
Question 1. Explain why a quota is more detrimental to an economy than a tariff that results in the same level of imports as the quota.
Question 2. What is the net outcome of either tariffs or quota for the world economy?