macro questions

Assume the following; - The interest rate in the Euro area is 5 %; - The interest rate injapan is 4%; - The current nominal exchange rate is 157 (1 = 157 Yen); - The expected nominal exchange rate next year is 156. Question: How many pounds would a UK resident expect to earn for each pound invested in Japanese bonds for one year? (Answer in the x.xx format, e.g. 1.23 to represent 1.23) Answer: If the exchange rate between the dollar and the pound (the pound price of the dollar) is currently 1.2 (1=$1.2), and is expected to be 1.3 in one year, what is the rate of change in the dollar? Please answer in the xx.xx format with 2 decimal places (e.g. 12.34 to represent 12.34%) and preceed your answer with a "+" or - to represent an appreciation and depretiation of the dollar, respectively) Answer: In an open economy context, an increase in foreign demand (Y*), will Select one: Q a. keep domestic output (Y) unchanged b. decrease domestic output (Y) c. Reduce Net Exports (NX) d. Increase Imports (IM) 0000 e. Increase domestic output (Y) Consider two bonds, one issued in pounds () in the UK and one issued in dollars ($) in the United States. Assume that both government securities are one-year bonds - paying the face value of the bond one year from now. The exchange rate (Et) stands at 1.4 dollars per pound (1=$1.4). The face values and prices on the two bonds are given by: a Face value Price United States $10,000 $ 9619 United Kingdom 10000 9718 What is nominal interest rate of the US bonds.7 (please answer in the xx.xx format, e.g. 12.34 to represent 12.34%)