Suppose on 1 January 2022 interest rate in US (home country) was 0.25% and in Japan was 0.1%, whereas the spot exchange rate was 115z/$. On 15 June 2022 , US increased interest rate to 1.75% while Japan interest rate remained the same, the Japanese exchange rate depreciated from 115 Z/$ to 137$. (*Using proper diagram(s) and interest rate parity condition) Explain why exchange rate changed from 115 per dollar to 137 per dollar. And if with US inflation reached new 40-year high in June 2022 of 9.1%, it is expected that US will keep increasing her interest rate toward the end of this year. a) How the expectation will affect the current spot exchange rate? b) If you have $1000 for investment in USD or Japanese Yen deposit till the end of this year, how would you invest your $1000 now? Suppose on 1 January 2022 interest rate in US (home country) was 0.25% and in Japan was 0.1%, whereas the spot exchange rate was 115z/$. On 15 June 2022 , US increased interest rate to 1.75% while Japan interest rate remained the same, the Japanese exchange rate depreciated from 115 Z/$ to 137$. (*Using proper diagram(s) and interest rate parity condition) Explain why exchange rate changed from 115 per dollar to 137 per dollar. And if with US inflation reached new 40-year high in June 2022 of 9.1%, it is expected that US will keep increasing her interest rate toward the end of this year. a) How the expectation will affect the current spot exchange rate? b) If you have $1000 for investment in USD or Japanese Yen deposit till the end of this year, how would you invest your $1000 now