q21&q22 thanks!!

ETLIS EI E2 2 E3 R* In the diagram above. The horizontal axis measures rates of return in percentages, We compare rates of return on the following two types of investments: (1) interest rates on TL denominated assets (R, and Rn ) (il) returns on & denominated assets (R, and R , ) by starting with TL, converting to S, investing in a S denominated asset and converting to TL again. 21. The following leads to a movement from point I to 2: a. A rise in world (dollar denominated assets) interest rates b. A rise in interest rates in Turkey C. A fall in interest rates in Turkey d. Increase in inflationary expectations in Turkey. e. A rise in the expected TL/S parity 22. The following leads to a movement from point 3 to 1: a. Rise in US interest rates b. Decrease in inflows of short term capital into Turkey causing an increase in expected TL/$ parity c. Fall in US interest rates d. ( a) and (c ) e. (b) and (c)