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fx D E A Country US Iceland US Iceland Year 1: Interest Rate Year 2: Interest Rate Year 3: Interest Rate Year 4: Interest Rate

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fx D E A Country US Iceland US Iceland Year 1: Interest Rate Year 2: Interest Rate Year 3: Interest Rate Year 4: Interest Rate 5.15 5.27 2.96 0.56 12.35 14.29 15.82 11.28 Year 1: Inflation Rate Year 2: Inflation Rate Year 3: Inflation Rate Year 4: Inflation Rate 3.07 2.66 1.96 0.76 4.16 11.39 8.15 Year 1: % Change in IQ Year 2: % Change in IQ Year 3: % Change in IQ Year 4: % Change in IQ 0 0 0 0 11.43 -8.73 37.3 40.58 8.8 US Iceland Q7. Over the 4-year period, what should have been the annual percentage change in the FX direct quote according PPP? Q8: Over this 4-year period, did the FX Appreciate or Depreciate in "real terms"? 09. Over this 4-year period, what was the annual percentage uncovered rate of return from the home country's point of view (Ruh)

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