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Please answer both parts. Thanks! 2. As of November 1, 1999, the exchange rate between the Brazilian real (hey-ow; plural, reais, heyice) and U.S. dollar

Please answer both parts. Thanks!

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2. As of November 1, 1999, the exchange rate between the Brazilian real ("hey-ow"; plural, reais, "heyice") and U.S. dollar is R\$1.95/\$. The consensus forecast for the U.S. and Brazil inflation rates for the next 1-year period is 2.6% and 20.0%, respectively. a. Which currency is expected to depreciate according to PPP? b. What would you forecast the exchange rate to be at around November 1, 2000

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