First choose correct option and explain step by step with reasan

2. The formula for predicting changes in the nominal exchange rate, when PPP doesn't hold, is the rate of real depreciation: Group of answer choices multiplied by the nominal wage. multiplied by the interest rate differential. added to the inflation differential. multiplied by inflation in the home naon. 1. Between 1992 and 2001, the carry trade strategy of borrowing yen and investing in Australian dollars produced roughly offsetting profits and losses because: Group of answer choices the yen appreciated whenever the Australian-Japanese interest rate differential widened. the yen depreciated whenever the Australian-Japanese interest rate differential widened. the yen appreciated whenever the Australian-Japanese interest rate differential narrowed. the value of the yen against the Australian dollar remained constant