Chapter 18 Homework Saved 3 Suppose the spot exchange rate for the Canadian dollar is Can$1.09 and the six-month forward rate is Can$1.06. a. Which is worth more, a U.S. dollar or a Canadian dollar? b. Assuming absolute PPP holds, what is the cost in the United States of an Elkhead beer if the price in Canada is Can$3.04? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar? d. Which currency is expected to appreciate in value? e. Which country do you think has higher interest rates-the United States or Canada? Print a. Worth more, a U.S. dollar or a Canadian dollar? b. Cost in U.S. dollars c. U.S. dollar seling at a premium or a discount relative to the Canadian dollar d. Which currency is expected to appreciate in value? e. Which country do you think has higher interest rates the United States or Canada