Draw the exchange market where dollars trade for british pouds, with the equilibrium exchange rate at $1.29 and the equilibrium total amount of pounds traded at 10 million.

a. assume people in britain become pessimistic about visiting, buying or investing in US. How is market affected? (which curve will shift and in which direction)?

b. What will happen to equilibrium quantity of pounds traded after event in part a. what will happen to equilibrium rate?