5A. Suppose the current spot rate for the UK pound is $1.9586/. The annual inflation rates in the US and in the UK are expected to be 2% and 5%, respectively. This means that: a. The U.S. dollar should appreciate over the next year. b. The U.S. dollar should depreciate over the next year. c. Both a and b are true. d. Neither a nor b are true. 5B. Using the information provided in question 5A, what is your best forecast for the dollar/pound exchange rate in one years' time? a $1.90264/ b. $0.52559/ c. $2.01621/ d. I'd like to phone a friend