Consider the following Taylor Rule for the nominal short-term U.S. policy interest rate (11$): Rs = l=us +1105 + Bonus '7933 + (1 BXYUS 'Yl Where: . nus E current US inflation rate . EU; E US neutral real rate of interest . y\"; E current US real output growth . "13.3 E US ination target . "y, s E US real potential output growth Consider the UIP condition with the US dollar as home currency and the euro as the foreign currency: Ef/g E$f R$ = Rg + E$/ d. Plug in the Taylor Rule for the US dollar interest rate R3; and solve for the equilibrium spot exchange rate E's/g as a function of all other variables. e. Using your answer from part d., calculate the marginal effect of a rise in U.S. inflation (nus) on the nominal spot exchange ). (Hint: calculate was . Will higher U.S. ination rate mm an US strengthen or weaken the U.S. dollar? Why