AP foreign exchange question 2

The European Union and the United States are trading partners.
(a) If the current account balance is zero, will an increase in United States real income result in a current account surplus, deficit, or no change? Explain.  It would lead to a current account deficit. If our real income increase, we are buying more foreign goods ( imports). which is a debit to current account.
(b) Draw a correctly labeled graph of the foreign exchange market for the euro. On your graph, show the effect of the increase in United States real income on the value of the euro relative to the United States dollar. the Euro will appreciate / You could draw  either one

(c) Now assume interest rates increase in the European Union.
(i) What is the effect of the increase in interest rates in the European Union on the demand for the United States dollar? Explain. the demand for the US dollar will decrease, as the demand for the Euro bond increase, causing the demand to convert U.S. dollars into Euros  U.S. investors will want to invest in Europe, bc of their higher rates in return.
(ii) Based on your answer to part (c)(i), what is the effect on the value of the United States dollar relative to the euro? The dollar would depreciate.