(a) Suppose that at the start of 2014, an Australian investor put $10 000 into a one-year euro investment. If the exchange rate was 1.5 euros per dollar, how much would $10 000 be in euros? Over the course of the year, the euro investment paid 10 per cent interest. But when the investor switched back to Australian dollars at the end of the year, the exchange rate was 2 euros per Australian dollar. Did the change in the exchange rate earn the investor more money or less money? How much? How does your analysis change if the exchange rate had fallen to 1 euro per Australian dollar? (6 Marks) (b) Following data describe the economy of Nova in 2030. Government expenditure $200 billion, saving $100 billion, official reserves $5 billion, net foreign investment $50 billion, net taxes $150 billion and investment $125 billion. Calculate the current account balance, the capital and financial account balance, the government sector balance, and the private sector balance. (6 Marks)