Currently the real interest rate in both US and Brazil is 1%. According to the consensus in capital markets, the annual inflation rate for the next two years is likely to be 3% in US and 10% in Brazil. The spot exchange rate is currently $0.60/REAL. Based on the above information, please make your predictions on foreign exchange rate in the next year based on the parity relationships. Since the inflation rate of Brazil exceeds the inflation rate of US by 7%, money supply in Brazil will increase (increase/decrease) by 7 %%. Purchase power of money in Brazil will increase (increase/decrease) by 7 Brazilian Real should depreciate (appreciate/depreciate) in value by 7 % relative to $. The one-year forward Brazil real should sell at a forward discount (premium/discount) of 7 % relative to $. The expected future spot exchange rate in one year is 0.5618 $/REAL (please leave 4 decimal points). The forward exchange rate between US and Brazilian Real for one-year maturity is 05618 $/REAL (please leave 4 decimal points). The expected future spot exchange in two years from now is 0.5414 $/REAL (please leave 4 decimal points)