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Please help me answer questions.As soon as possible Directions: Using the financial principles learned, answering the following questions with the knowledge learnt from the International

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Directions: Using the financial principles learned, answering the following questions with the knowledge learnt from the International Finance. 3. The current spot exchange rate is $1.20leuro. The current 90-day forward exchange rate is $1.18/euro. You expect the spot rate to be $1.22/euro in 90 days. How would you speculate using a forward contract? If many people speculate in this way, what pressure is placed on the value of the current forward exchange rate? 4. A country has a marginal propensity to save of 0.15 and a marginal propensity to import of 0.4. Real domestic spending now decreases by $2 billion. a. According to the spending multiplier (for a small open economy), by how much will domestic product and income change? b. What is the change in the country's imports? If this country is large, what effect will this have on foreign product and income? Explain. d. Will the change if foreign product and income tend to counteract or reinforce the change in the first country's domestic product and income? Explain

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