Problem
Suppose that the Federal Reserve cannot convince the public of its commitment to fight inflation in the United States in the near future.
a) What would be the effect on the expected appreciation of the U.S. dollar?
b) What would be the effect on the spot exchange rate for the U.S. dollar? Explain your answer using a graph.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.