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2. ( 6 points) Define the Dollar-Euro exchange rate e(t) as the number of dollars per Euro. Suppose that the US interest rate (i) and
2. ( 6 points) Define the Dollar-Euro exchange rate e(t) as the number of dollars per Euro. Suppose that the US interest rate (i) and European interest rate (i*) are: i(t) = 2%, i(t+1) =2%, i(t+2) =3% i*(t) = -1%, i*(t+1) =0%, i*(t+2) =3% It is announced at time t that e(t+2) =1.5, what is the numeric value of: e(t+1) = e(t) =
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