HELP FIGURE ALL THIS OUT

Assume: The current dollar-euro exchange rate E is $1.32 per euro. A U.S. basket that costs $120 would cost $100 in the Eurozone. For the next year, U.S. inflation is expected to be 6% and Eurozone inflation is expected to be 1%. a. What is expected U.S. minus Eurozone inflation (us - TEUR) in the next year? [1] b. What is the current U.S. real exchange rate (q) with the Eurozone? (price of Eurozone basket relative to U.S. basket) [1](2. Based on PPP, by how much [in % terms) is the dollar undervalued versus the euro [i.e., by what percentage is q bigger than 1)? [2] d. Assume that 20% [or 1/5] of the deviation from PPP (i.e., 20% of the difference between q and 1] is eliminated each year through gradual adjustment [arbitrage]. If so, what would be the e;p_e_c_te_d level of q one year from now? [2] e. Based on the last answer, how much (in %] will the dollar be undervalued versus the euro neg; year, assuming nothing else happens? And what is the MidI'M ghangg in g (i.e., what is Aq/q] from this year to next year? [2] f. Given the expected rate of change in q [in part e], and the expected ination differential [in part a], what is the expected rate of nominal depreciation AE/E for the dollar (versus the euro] for the coming year? [2]