Only typed answer  Suppose the dollar interest rate and the pound sterling interest rate are the​ same, 5 percent per year.   Suppose the expected future exchange​ rate, ​$1.89 per​ pound, and the US interest rate remain​ constant, while​ Britain's interest rate rises to 7 percent per year. What is the new equilibrium​ dollar/pound exchange​ rate?   New equilibrium exchange rate is ​$ here per pound.

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