Draw a diagram of the foreign exchange market equilibrium with the USD/EUR exchange rate E$f on the vertical axis, a vertical line at Rs; indicating the dollar return on dollar deposits, and a downward sloping curve showing how the dollar return on euro deposits varies with E$/. a) Assuming the expected exchange rate is constant, use the diagram to show how an increase in the USD interest rate impacts the USD/EUR exchange rate. Does the USD depreciate or appreciate against the euro? b) Assuming the expected exchange rate is constant, use the diagram to show how an increase in the euro interest rate impacts the USD/EUR exchange rate. Does the USD depreciate or appreciate against the euro? c) Now, use the diagram to show how an increase in the expected future exchange rate E$I impacts the current USD/ EUR spot exchange rate. Does the USD depreciate or appreciate against the euro