Question 17 (5 points) Suppose you are trying to forecast the exchange rate of the Australian dollar for the next year as you have a business in Australia. The current spot rate is US$0.69/A$. The 1-year interest rate in Australia is 3.00%, and the 1-year interest rate in the U.S. is 1.00%. What is the expected percentage change in the A$ exchange rate one year from now and what would be the forecast for the exchange rate next year? +2%; $0.9082/A$ +2%; $0.6762/A$ -2%; $0.6762/A$ 0-2%: $0.9082/A$ Previous Page Next Page Page 17 of 25