Question: please answer me. Q.2 ( 30 POints). Exchange Excess supply at E S Ftale, E causes the value of (euroalgsl the: dollar to fall. A

please answer me.

Q.2 ( 30 POints). Exchange Excess supply at E S Ftale, E causes the value of (euroalgsl the: dollar to fall. A EA 1 B E Excess demand at EC causes the value of the dollar'ho n'se. G EC D (Quantityr of Dollar Assets Refer to the figure above, treat the United States as the home country and denominate domestic assets in dollars($). And use euros to stand for any foreign country's currency and denominate foreign assets in euros. a) Discuss the effect of an increase in Domestic (the U.S) Real Interest Rate on the exchange rate. b) Discuss the effect of an increase in foreign Real Interest Rate on the exchange rate. 0) Discuss the effect of a rise in the expected future exchange rate on the exchange rate (2.3 (30 POints). Suppose Turkey becomes attractive to foreign investors. What are the consequences for the domestic currency(TL) and for the economy? Briey explain

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