Problem $9\mathrm{.}17($Forecasting Based on PPP versus the Forward Rate$)$

The inflation differential suggests that the Singapore dollar should slightly. Yet, the forward rate would have a large $-$ Select$-$ due to the interest differential. Thus, the forward rate would predict a very

Singapore dollar, which means that it would:$-$Sele the future spot rate.

Continue without saving

$1.($decline$/$rise$)$

$2.($premium$/$discount$)$

$3.($weak$/$strong$)$

$4.($underestimate$/$overestimate$/$be an unbiased estimate of$)$