d. Government Controls UK imposes trade barriers (e.g. increase tax withholdings) & raises taxes Demand What happens to the demand of en foreign earned income Arrows Why? Explain analysis the British pound by US citizens? Supply analysis USD by the British? What happens to the demand of How does this affect the equilibrium exchange rate? Illustrate using a graph. Clearly label the graph Usedotted lines to show the shifts. Give the values for Co and C co Formula: Calculations: Did the British pound appreciate or depreciate? Answer: Did the UD dollar appreciate or depreciate? Answer: Conclusion: Formula: Calculations: c. Expectations: British pound expected to appreciate Arrows Why? Explain Demand What happens to the demand of analysis the British pound by US citizens? Supply What happens to the demand of analysis USD by the British? How does this affect the equilibrium exchange rate? Illustrate using a graph. Clearly label the graph Usedotted lines to show the shifts Give the values for Co and ej Co= Formula: Ci- Calculations: Did the British pound appreciate or depreciate? Answer: Did the UD dollar appreciate or depreciate? Answer: Formula: Calculations: Conclusion: 7. Analysis of Factors Affecting the Equilibrium Exchange Rates of the S/ Assumptions: a. US and UK goods are perfect substitutes b. Initial equilibrium exchange rate is $1.50 c. If exchange rates increases, assumes it goes to $1.75/d. If exchange rates decreases, assumes it falls $1.30/ d. Government Controls UK imposes trade barriers (e.g. increase tax withholdings) & raises taxes Demand What happens to the demand of en foreign earned income Arrows Why? Explain analysis the British pound by US citizens? Supply analysis USD by the British? What happens to the demand of How does this affect the equilibrium exchange rate? Illustrate using a graph. Clearly label the graph Usedotted lines to show the shifts. Give the values for Co and C co Formula: Calculations: Did the British pound appreciate or depreciate? Answer: Did the UD dollar appreciate or depreciate? Answer: Conclusion: Formula: Calculations: c. Expectations: British pound expected to appreciate Arrows Why? Explain Demand What happens to the demand of analysis the British pound by US citizens? Supply What happens to the demand of analysis USD by the British? How does this affect the equilibrium exchange rate? Illustrate using a graph. Clearly label the graph Usedotted lines to show the shifts Give the values for Co and ej Co= Formula: Ci- Calculations: Did the British pound appreciate or depreciate? Answer: Did the UD dollar appreciate or depreciate? Answer: Formula: Calculations: Conclusion: 7. Analysis of Factors Affecting the Equilibrium Exchange Rates of the S/ Assumptions: a. US and UK goods are perfect substitutes b. Initial equilibrium exchange rate is $1.50 c. If exchange rates increases, assumes it goes to $1.75/d. If exchange rates decreases, assumes it falls $1.30/