International Fisher Equation holds, then the future spot exchange rate is a function of the initial spot rate in equilibrium and: The infstion differentix fise income difiedital the forward discount or premsim The real interest rate differentul The nominal inferent rate differental Question 16 2.5pts Aswume that Big Mac costs $6.50 in the U.S. and C5 in the U.K. Find the implised absolute PpP exchange rate, If the actual exchange rate 5/E - 1.4505 , then according to absolute PPP, which of the following statements is correct? Atrohute PPP boids between the US, and the UX He conts the saine in dotars to bur to Mac in the UK: The pounit frundervatued retathe to the dollar Question 17 2.5pts Which of the following factors is not affected when market forces resulting from Covered interest Arbitrase cause market realicninent? The current soot rate The future soot rats Deeneste inturest rates