FOR THEDUESTION (25 Points, 5 points each) 1. Assume that the inflation rate in Singapore is 3%, while the inflation rate in the U.S. is 8%. According to PPP, the Singapore dollar should A) appreciate; 4.85 B) depreciate; 3,11 C) appreciate; 3.11 D) depreciate; 4.85 by. 2. Assume that the one-year interest rate in the US, is 7% and in the UK is 5%. According to the international Fisher effect, British pound's spot exchange rate should A) depreciate; 1.9% B) appreciate: 1.9% C) depreciate: 3.94% D) appreciate: 3.94% by about over the year