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Question 5. (This question has two parts: a and b) a. The current Australian foreign exchange at equilibrium is 0.7 US dollar ($US) per Australian dollar. What will happen to the Australian foreign exchange in the two following different scenarios? a.1. Less and less Americans travel to Australia. Please elaborate your answer using the concepts of the demand curve for Australian dollars and the supply of Australian dollars. [3.5 marks] a.2. Due to the Covid-19 pandemic, the US productivity growth is lower than Australia's productivity growth. Please elaborate your answer using the concepts of the demand curve for Australian dollars and the supply of Australian dollars. [3.5 marks] b. Assume the following information: You have $1,500,000 to invest. Current spot rate of pound = $1.61. 90-day forward rate of pound = $1.57. 3-month deposit rate in U.S. = 2.39%. 3-month deposit rate in U.K. = 5%. Does the covered interest parity hold? If you use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 clays? (Note that students are required to detail every step of implementing the covered interest rate arbitrage to obtain full credits) [5 marks]