1) Consider the supply-demand framework for the British pound relative to the U.S. dollar shown in the chart. The equilibrium exchange rate based on both the supply (S) and the demand (D) is $1.90/. Please ignore the demand curve D'. Dollar price per pound (orchange rate) $1.90 +1.80 However, when the current market exchange rate is $1.80/, a) Does the US experience the trade deficit or surplus with the U.K? (20points) b) Explain your answer based on both the demand and the supply for the pound. (20points)