h. Suppose the ECB keeps the euro interest rate at 1 % forever. The Fed now raises its interest rate from 1 % to 4 % for the coming year. After this event, approximately what is the expected rate of dollar depreciation if UIP holds over the coming year?

i. In the last question, suppose the policies are temporary, and everyone believes the exchange rate will revert to its long run PPP value of $1.03 per euro one year from now. What will be the spot exchange rate ($/) today approximately?

j. According to the trilemma, which three macroeconomic policies are mutually inconsistent?