macro questions

Suppose that the uncovered interest parity condition holds and the expected exchange rate between the euro and the dollar in one year is 1.50 (1 = $1.50). Using the exact formula, determine the current EUR/USD exchange rate when the interest rate is 4% in the Euro area and 5% in the USA. (Answer using 4 decimal places) Answer: When the pound appreciates relative to the US dollar, the dollar price of the pound Select one: Q a. decreases b. increases c. does not change d. changes the next period 0000 e. increases or decreases, depending on the amount of depreciation In an open economy context, an increase in the domestic interest rate (i), will (ceteris paribus) lead to Select one: Q a. keep domestic output (Y) unchanged b. an appreciation of the domestic currency c. a depreciation of the domestic currency d. keep the exchange rate unchanged 0000 e. increase output (Y) The ratio of a country's exports to its GDP must Select one: O a. be greater than one O b. be less than one O c. be smaller than one O d. be larger than the ratio of imports to GDP O e. none of the abovePlease state whether the following sentence is true or false: A real appreciation means that domestic goods become less expensive relative to foreign goods. Select one: 0 True 0 False Assume the following; 1. The interest rate in the Euro area is 4%; 2. The interest rate inJapan is 2%; 3. The current nominal exchange rate is 165 (1 = 165 Yen); 4. The expected nominal exchange rate next year is 155. Using the information above answer the following question: What is the expected rate ofappreciation or depreciation of the Euro? (precede the number with a + or minus to denote appreciation or depreciation, respectively, and use 2 decimal places - e.g +0.12 to mean an appreciation of 12%)