1. Multiple Choices (25 points) Note: Only one answer is correct 1. The Exchange Rate between currencies depends on () A. The Interest Rate that can be earned on deposits of those currencies B. The Interest Rate that can be earned on deposits of those currencies and the Expected Future Exchange Rate C. The Expected Future Exchange Rate D. National Output 2. The Aggregate Demand for money can be expressed by 0 A. Md=P* L(RY) B. Md=L * P(R.Y) C. Md=P* Y(RL) D. Md=R* L(P.Y) 3. Under Purchasing Power Parity, which of the following is true? O A. ESE = Pus/PE B. Ese = PE/PUS C. E$E = Pus + PE D. ESE = PUS - PE