b. Suppose that the Australia price level is initially AUD15,00{] per Australian consumption bundle, and the price level in Britain is initially 11,0DD per British consumption bundle. With the nominal spot exchange rate equal to AUD1.56,I', what is the current real exchange rate? {1 mark} c. Suppose that over the next yearI there is 3% inflation in Australia, there is 1% inflation in Britain, and the nominal exchange rate changes so that relative purchasing power parity is satisfied. What is the expected nominal exchange rate alter1 year? [1 mark] d. Suppose that the pound actually depreciates in nominal terms by 1% relative to the HUD during the year (ex post). it What turns out to be the actual nominal exchange rate after 1 year? {1 mark} ii} What is the ex post rate of change in real exchange rate? [2 marks} iiil Has the pound appreciated or depreciated in real terms? (1 mark} ivl What is the new real exchange rate after 1 year? {2 marks} v} Based on the real exchange rate observed over the year, is the relative purchasing power parity found to be satisfied or not and what is the reason for your answer? {2 marks}