6. (15 points) How can one rely on the uncovered interest parity condition to explain the exchange rate when it assumes that everyone has the same expectation of the future? If you and I expect that the domestic currency is going to appreciate in the future by an identical magnitude, would you sell domestic currency to me? Should not there be an uncovered interest parity condition for each expected value of the expected exchange rate? So for the ith individual, the expected exchange rate is Ep and the relevant equation is Rs = RE + 1 and therefore there are as Ei many equilibrium exchange rates as individuals. If so, what is the meaning of the equilibrium exchange rate? How can one reconcile the possibility of a multiplicity of exchange-rate expectations with the use of a single expected exchange rate in the uncovered interest parity condition? Would Keynes' chapter 12 help resolve this tension? 6. (15 points) How can one rely on the uncovered interest parity condition to explain the exchange rate when it assumes that everyone has the same expectation of the future? If you and I expect that the domestic currency is going to appreciate in the future by an identical magnitude, would you sell domestic currency to me? Should not there be an uncovered interest parity condition for each expected value of the expected exchange rate? So for the ith individual, the expected exchange rate is Ep and the relevant equation is Rs = RE + 1 and therefore there are as Ei many equilibrium exchange rates as individuals. If so, what is the meaning of the equilibrium exchange rate? How can one reconcile the possibility of a multiplicity of exchange-rate expectations with the use of a single expected exchange rate in the uncovered interest parity condition? Would Keynes' chapter 12 help resolve this tension