please help

According to the interest parity relation if the current interest rate on a one-year bond is 5% and the interest rate on a comparable foreign one-year bond is 7%, over the next year the exchange rate of the domestic currency O is expected to appreciate 12% O is expected to depreciate 2% O is expected to appreciate 2% O is expected to depreciate 5% Question 18 1 pts According to the 'Marshall-Lerner' condition, net exports increase (i.e, the trade account balance improves) on the occurrence of a depreciation of the nominal exchange rate when the price elasticity of export demand is greater than one O' a depreciation of the real exchange rate when the sum of the price elasticity of export demand and the price elasticity of import demand is greater than one @ a depreciation of the real exchange rate when the price elasticity of export demand plus the price elasticity, of import demand is greater than zero an appreciation of the nominal exchange rate when the sum of the price elasticity of import demand and the price elasticity of export demand is greater than zero