Question: Using the model of exchange rate determination (based on the choice between domestic and foreign assets), analyze what will happen to the current exchange rate

Using the model of exchange rate determination
Using the model of exchange rate determination (based on the choice between domestic and foreign assets), analyze what will happen to the current exchange rate (of US$ against the relevant foreign currency) as a result of each of the following changes in economic environments. a. The general public increases their expected inflation in the U.S. b. The market expects that the US $ will depreciate over the next year. c. Real interest rates in the US rise (with no change in the expected inflation of the public)

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