A government wants to fix its exchange rate, but it does not want to give up its monetary policy. Instead, it imposes a

[answerhappygod]

A government wants to fix its exchange rate,
but it does not want to give up its monetary
policy. Instead, it imposes a per-unit cost of
exchanging currency 𝑐c, so that for every 1 unit of
domestic currency converted to 1/𝐸𝐷/𝐹1/ED/F units of foreign
currency, a cost of 𝑐c incurs. There is no cost incurred in the
conversion of foreign currency back to domestic currency.
** Part a (5 marks)
Modify the exact version of the
uncovered interest rate parity to suit this
situation.
** Part b (5 marks)
Graphically show that it is now possible to change the money
supply 𝑀𝑠 while keeping the exchange rate pegged (holding
other things constant).