2;(two points) Answer the following questions using the diagram below an;d the uncovered interest parity (UIP) approximation is = 55+ (scEseEse (Round any calculations to three decimal places): Foreign Exchange Market 0.0496 0.0497 0.0493 0.0499 0.0500 0.0501 0.0502 At our starting point: The interest rate on dollar deposits (is) is 1.5% The interest rate on peso deposits (is) is ?.5% The dollarpeso spot exchange rate (Em) is $0.050 The dollarpeso expected exchange rate @c), which remains constant throughout, is at $0.04?0 Foreign Return (FR) \"50, Spot Exchange Rate, Ewe 2a. Ifthe dollar interestrate rises from 1.5% to 2%, does the dollar appreciate or depreciate? What is the new spot exchange rate? 2b. Ifthe dollar interestrate falls from 1.5% to 1.25%, does the dollar appreciate or depreciate? What is the new spot exchange rate? 2c. Using the data points that you have been given and calculated, draw the foreign return curve on the diagram above