Suppose the dollar interest rate and the pound sterling interest rate are the same,5 percent per year. What is the relation between the current equilibrium $/£ exchange rate and its expected future level? Suppose the expected future $/£ exchange rate,$1.52 per pound, remains constant as Britain's interest rate rises to 10 percent per year. If the U. S. interest rate also remains constant, what is the new equilibrium $/£exchange rate?(

answer///ability to capture the attention of users;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.