Question: Solve for A and B please? Question Completion Status: Moving to the next question prevents changes to this answer Question 2 of 14 uestion 2

 Solve for A and B please? Question Completion Status: Moving to

Solve for A and B please?

Question Completion Status: Moving to the next question prevents changes to this answer Question 2 of 14 uestion 2 10 points Save On July 13, 2017 the exchange rate between the Brazilian Real and US Dollar was BR3 2141/5 The consensus forecast for Brazil and the US inflation rates for next year is 5 25% and 1.75%, respectively a Calculate the expected spot rate one year from now for the Brazilian Real per one US Dollar (Round the calculated spot rate at the 4th digit after the decimal) (5 points) b. According to the relative version of the purchasing power parity, do you expect the Brazil Real to depreciate or appreciate versus the USD? And by how many percent? (Round the calculated percentage at the 4th digit after the decimal, such as 0 1234%) (5 points) For the toolbar, press ALT+F10 (PC) or ALT FN+F10 (Mac) Arial 3 (12pt) T-E-IE A) exchange rate= BR3.2141/5 inflation rate of brazil-5,25% and for us= 1.75% I spot rate t+1+3.2141 1+0.0525/1+0.017542485 approximate formula= 4.2485-3.2141/3 2141 100=32 18% Type here to search ENG 6:43 PM 120

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