Questions 35-39 are based on the following information: In October 2013, there is a consensus in the capital market that the annual inflation rate is likely to be 3.5% in US and 1.5% in China for the next two years. Based on this information, answer the following questions regarding your prediction on the foreign exchange rate. According to the above information, (USD or Chinese Yuan?) is expected to depreciate in value in year 2014 if parity relations hold. (2 points) Questions 35-39 are based on the following information: In October 2013, there is a consensus in the capital market that the annual inflation rate is likely to be 3.5% in US and 1.5% in China for the next two years. Based on this information, answer the following questions regarding your prediction on the foreign exchange rate. According to the above information, (USD or Chinese Yuan?) is expected to depreciate in value in year 2014 if parity relations hold. (2 points)