QUESTION 3 1 p Assume that relative to today, Dollar is expected to depreciate against the Euro by 10% in real terms over the next period. Assume further that the expected rates of inflation (over the next period) is 10% and 5% in Australia and Europe, respectively. If the real interest rate in Europe re = 5%, choose the correct option: A. The above information is not enough to calculate rs O B. Is = 10% O C. IS = 20% O D. IS =-5% O E. rS = 15%