Draw the schematics to show the effect of expansionary monetary policy on the exchange rate. What effect on the U.S. trade deficit and exchange rate would result if Japan ran an expansionary monetary...

Draw the schematics to show the effect of expansionary monetary policy on the exchange rate. What effect on the U.S. trade deficit and exchange rate would result if Japan ran an expansionary monetary policy? What would be the effect on the U.S. exchange rate if Japan ran a contractionary fiscal policy?