Please use the data below to answer the following question. Expected annual inflation rate in the US (Ih) Expected annual inflation rate in Euro Zone (If) Current Exchange Rate If one year later, the spot rate of EUR turns out to be $1.26, then the EUR a US exporter to the Euro Zone to O appreciated; increase O appreciated; decrease O depreciated; decrease 6% 4% 1 EUR = USD 1.25 depreciated; increase 3.33 pts in "real" terms, causing the net cash flow of T 1

Picase use the data below to answer the following question. If one year later, the spot rate of EUR turns out to be $1.26, then the EUR in "real" terms, causing the net cash flow of a US exporter to the Euro Zone to appreciated, increase appreciated; decrease depreciated; decrease depreciated; increase