1.Think of the U.S demand for and supply of foreign exchange, the English Pound. For each of the events listed, describe how the demand and/or supply of English Pounds change (+, -, 0). Also state whether the pound has appreciated, depreciated or undergone an indeterminate change.

a. As a result of recovering from a depression, U.S. incomes rises significantly.

Demand ___Supply ____Currency change __________

b. The United Kingdom experience as a serious recession, causing a decline in income.

Demand ___Supply ____Currency change __________

c.Restrictive monetary policy in the United State causes U.S interest rates to rise relative to United Kingdom rates.

Demand ___Supply ____Currency change __________