Question: Question 8 (4 points) The table below shows expected inflation rates in the United States and Mexico for the next two years. If the exchange

Question 8 (4 points) The table below shows expected inflation rates in the United States and Mexico for the next two years. If the exchange rate on April 27, 2020 was 24.7 pesos to the dollar, what would be the expected peso per dollar exchange rate in two years? Show your work by writing out any equations you use. Expected Inflation United States Mexico 2% 5% 7% Year 1 Year 2 3% Question 9 (3 points) Suppose the spot quote on the British Pound is $1.5913-45, and the spot quote on the Mexican peso is $0.0940-85. Imagine you are a Mexican peso dealer in Britain. What is the indirect ask spot quote for the Mexican peso in Britain? 0.05895 16.1879 0.06177 0.05907 0.06190 16.9628 16.9287 16.1553

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