Question: Problem 14 Intro Consider the following information about the U.S. and Brazil: U.S. Brazil Expected inflation rate 2% 5% Nominal interest rate 3.1% 4.4% Spot


Problem 14 Intro Consider the following information about the U.S. and Brazil: U.S. Brazil Expected inflation rate 2% 5% Nominal interest rate 3.1% 4.4% Spot rate $0.233 per real 1-year forward rate $0.216 per real Part 1 Attempt 1/10 for 10 pts. What is the expected exchange rate in one year according to purchasing power parity (in dollars per real)? 3+ decimals SubmitPart 2 | Attempt 1/10 for 10 pts. What is the expected exchange rate in one year according to the international Fisher effect (in dollars per real)? 3+ decimals Submit Part 3 Attempt 1/10 for 10 pts. What should be the one-year forward rate according to interest rate parity (in dollars per real)? 3+ decimals Submit
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