(4)(a) Suppose the exchange rate for the Mexican Peso was $0.100 in Jan 2020 and $0.105 in January 2021. Which currency ( $ or peso) appreciated/depreciated? By how much is the appreciation/depreciation? (b)Assume a trade relationship that allows free movement of capital between U.S. and Germany. Briefly discuss, with strong theoretical support, the impact of a relative rise in U.S interest rate on the dollar/euro exchange rate. [ In your discussion, include the role of the "Fisher effect"] (c)Consider the following information: What will the dollar/ zloty exchange rate be four periods from now according to PPP? (4)(a) Suppose the exchange rate for the Mexican Peso was $0.100 in Jan 2020 and $0.105 in January 2021. Which currency ( $ or peso) appreciated/depreciated? By how much is the appreciation/depreciation? (b)Assume a trade relationship that allows free movement of capital between U.S. and Germany. Briefly discuss, with strong theoretical support, the impact of a relative rise in U.S interest rate on the dollar/euro exchange rate. [ In your discussion, include the role of the "Fisher effect"] (c)Consider the following information: What will the dollar/ zloty exchange rate be four periods from now according to PPP