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Consider the economic change listed along the top row of the following table. In the empty boxes, indicate the effect of the change (+ for

Consider the economic change listed along the top row of the following table. In the empty boxes, indicate the effect of the change (+ for positive, - for negative, ? for unclear effect). Use the interest rate parity model to determine the answers (You need to write the interest rate parity model first).

A Increasing in Next Years Expected Dollar Value

RoR on U.S. Assets

RoR on Euro Assets

Demand for U.S. Dollars on the Forex

Demand for Euros on the Forex

U.S. Dollar Value

Euro Value

E$/

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