Suppose it is widely expected that the Canadian economy will grow faster than the Japanese economy, have lower inflation, have a slower growth in money supply, and have low and declining interest rates. Given these expectations:

1. what does the asset market approach to exchange rate predict about the value of the dollar?Why?
2. what does the relative purchase power parity theory predict about the value of the dollar?Why?
3. what does the monetary approach predict about the value of the dollar?Why?