Question: Fill in the blank. Using CIP intuition: 1. If dollar interest rate is 4% higher than Yuan interest rate, then investors expect dollar to appreciate

Fill in the blank.

Using CIP intuition:

1. If dollar interest rate is 4% higher than Yuan interest rate, then investors expect dollar to appreciate ______% relative to Yuan. (answer can be positive or negative)

2. If investors expect euro to appreciate 10% relative to Mexican peso, and interest rate in Europe is 5%, then interest rate in Mexico is ______%.

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3. How can we use information and communication to generate trust?

4. How can we use information and communication to influence other people?

2. Why do we have more confidence in what one person tells us than in what another person tells us?