Q2 Three-years ago the USD/NZD exchange rate was 1.5882 and today the exchange rate now sits at USD/NZD 1.6366. New Zealand inflation has been at rates of 3.94%, 1.71% and 1.62% over the last 3 years. In the U.S., the inflation rates have been 4.7%, 0.58% and 1.81%. (a) What is the total percentage change of the NZD in nominal terms over the last 3 years. (b) Calculate today's real FX value of the NZD adjusted for the past three year's inflation differential (show all working). Your goal is to find a value comparable to the exchange rate three years ago. (c) Has the NZD appreciated or depreciated in real terms over the three-year period against the U.S. Dollar? You must demonstrate and explain how it is that you know this. By how much has the NZDs value changed in real terms (answer as a percentage)?