Question: Hey, help me solve the question and provide me with explanations and calculations. Thank you! Question 9 If the yields on one-year government bonds in

Hey, help me solve the question and provide me with explanations and calculations. Thank you!

Hey, help me solve the question and provide me with explanations and

Question 9 If the yields on one-year government bonds in Australia and U.S. are 5% and 3% respectively, what would you expect the AU$/US$ exchange rate to change in one year according to Interest Rate Parity Theory? Not yet answered Marked out of 1.00 P Flag question Select one: O a. AU$ is expected to depreciate by about 2% relative to US$ O b. AU$ is expected to be the same at current rate relative to US$ O C. AU$ is expected to appreciate by about 2% relative to US$ O d. AU$ is expected to appreciate by about 3% relative to US$ o e. AU$ is expected to depreciate by about 5% relative to US$

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