QUESTION 11 You are given the following information. The current dollar-pound exchange rate is $1.5 per pound. A U.S. basket that costs $100 would cost $120 in the United Kingdom. For the next year, the Federal Reserve is predicted to keep U.S. inflation at 2% and the Bank of England is predicted to keep U.K. inflation at 3%. The speed of convergence to absolute PPP is 15% per year. What is the expected U.S. minus UK inflation differential for this coming year? (Enter 9% enter "9" not "0.09"). QUESTION 12 Continuing from the previous question. What is the U.S. real exchange rate, US / UK, with the United Kingdom