2. Hockey puck is the only good produced everywhere and is identical across the world. Suppose a puck costs CAD $1 in Canada and USD $0.75 in the United States. (a) According to the Law of One Price, what should the spot exchange rate between CAD and USD be? (b) If inflation rate is 2% in Canada and 3% in the U.S., what would you expect exchange rate to be in one year? (c) Real exchange rate is defined as the rate of exchange between identical goods, i.e., how many pucks in the U.S. could you buy with one puck in Canada? Sup- pose the nominal exchange rate between Canadian dollars and U.S. dollars is 1 CAD = 1 USD. What is the real exchange rate between Canada and US (i.e., if you sell one puck in Canada, how many pucks can you purchase in the U.S.?) (d) If the Law of One Price holds, what should the real exchange rate be