Q2. (a) Compare and contrast interest rate parity, purchasing power parity(PPP), and the international Fisher effect (IFE). (b) Assume that the inflation rate in Brazil is expected to increase substantially. How will this affect Brazil's nominal interest rates and the value of its currency (called the real)? If the IFE holds, how will the nominal return to U.S. investors who invest in Brazil be affected by the higher inflation in Brazil? Explain. (c) One assumption made in developing the IFE is that all investors in all countries have the same real interest rate. What does this mean? (d) Differentiate between a hedger and a speculator