Suppose nominal interest rates in Malaysia are greater than nominal interest rates in Indonesia. (Malaysian currency is the Ringgit (MYR) and Indonesian currency is the Rupiah (IDR).

Select all choices below that are implied by the statement if parity conditions (PPP, IRP, FEP) hold:

The ratio of real interest rate factors (1 + r) will equal the ratio of inflation factors (1 + ).

The IDR will trade at a forward discount.

Nominal interest rates in Indonesia will rise.

The MYR will trade at a forward premium.

The Ringgit is expected to depreciate relative to the Rupiah.

The ratio of inflation factors (1 + ) will be equal to the ratio of nominal interest rate factors (1 + i).