5 and 6 relate to one problem please anser al four parts i provided the drop down options

5. Suppose the interest rate in the US is 2% and the interest rate in Russia is 15%. In a year investors expect the exchange rate to be at Es /p=0.016. Suppose the VIP holds. What is the exchange rate today? Your answer: The spot exchange rate today is [Select] 6. Exchange rates and shocks. Using the VIP expression you obtained answer the following questions: (a) Suppose the Central Bank of Russia announces its intentions to raise the interest rate. What will happen to Es/p? Will the ruble appreciate or depreciate against the dollar? Explain. Your answer: Following this news, spot exchange rate Es/p will [Select] The ruble will [Select] against the dollar (b) Suppose now the FED announces the interest rate cut. What will happen to Es/p? Will the ruble appreciate or depreciate against the dollar? Explain. Your answer: Following this news, spot exchange rate Es/p will [Select) The ruble will [Select ] against the dollar. 5. Suppose the interest rate in the US is 2% and the interest rate in Russia is 15%. In a year investors expect the exchange rate to be at Es /p=0.016. Suppose the VIP holds. What is the exchange rate today? Your answer: The spot exchange rate todayi (Select ] 0.018 0.0067 6. Exchange rates and shock 0.0021 the following questions: 0.016 obtained answer 6. Exchange rates and shocks. Using the VIP expression you obtained answer the following questions: (a) Suppose the Central Bank of Russia announces its intentions to raise the interest rate. What will happen to Es/p? Will the ruble appreciate or depreciate against the dollar? Explain. Your answer: Following this news, spot exchange rate Es/p wiV [ Select ] not change go up The ruble will [Select] go down 6. Exchange rates and shocks. Using the VIP expression you obtained answer the following questions: (a) Suppose the Central Bank of Russia announces its intentions to raise the interest rate. What will happen to Es/p? Will the ruble appreciate or depreciate against the dollar? Explain. Your answer: