Imagine that there is a tax on domestic currency deposit interest earnings and another tax on foreign currency deposit interest earnings. The tax rate on domestic currency deposit interest earnings is T. The corresponding tax rate is r* for foreign currency deposit interest earnings. (Note that the tax rates T, T* are rates. For example, t could be 0.03, or 3 percent.) What is the uncovered interest parity condition (approximation version) in this scenario? ** Part b (5 marks) Following Part a, suppose now there is an decrease in the foreign tax rate T*. The domestic tax rate t* remains the same. Show the effect on the exchange rate using graphical analysis and explain your intuition. ** Part c (5 marks) Explain whether a change in the expected exchange rate could lead to a similar effect as in Part b.