3. A United States firm sells $10 million worth of goods to a firm in Argentina, where the currency is the peso.(a) How will the transaction above affect Argentina’s aggregate demand? Explain.(b) Assume that the United States current account balance with Argentina is initially zero. How will the transaction above affect the United States current account balance? Explain.(c) Using a correctly labeled graph of the foreign exchange market for the United States dollar, show how a decrease in the United States financial investment in Argentina affects each of the following.(i) The supply of United States dollars(ii) The value of the United States dollar relative to the peso(d) Suppose that the inflation rate is 3 percent in the United States and 5 percent in Argentina. What will happen to the value of the peso relative to the United States dollar as a result of the difference in inflation rates?Explain.2006 #1 – part d and e"Assume the U.S. is operating below full employment."d. Assume that the US trades with Japan. Draw a correctly labeled graph of the FOREX market for the US dollar. Show and explain how the supply of the US dollar will be affected in the FOREX market.e. indicate what will happen to the value of the US dollar relative to the Yen.