It is now the beginning of year $2022.$ The spot bid rate for the US Dollar is TZS$2,240$ while

the spot bid $-$ ask spread is TZS$15.$ A forecaster provides the following forecasts for the

bid$-$ask spread and inflation rates for Tanzania and United States in the next four years.

Page $3$ of $4$

YEAR $2023202420252026$

BID$-$ASK SPREAD $[$TZS$]23273025$

FORECAST RATE OF

INFLATION

$$ TANZANIA

$6\%5\%4\%3\mathrm{.}5\%$

$$ UNITED STATE $3\mathrm{.}5\%3\%3\%2\mathrm{.}5\%$

REQUIRED:

On the basis of the bid$-$ask spread forecasts and the theory of PPP determine the

expected exchange rates and the percentage bid ask$-$spread for the years $2023-2026.$