Suppose that the spot exchange rate for the Brazilian Real is 1 US Dollar 3.90 Reals. You expect the inflation rate to be 1.4 per cent per year in the United States and 5.5 per cent per year in Brazil. You need to come up with a 5 year forecast of the exchange rate a) Given the information above, what version of Purchasing Power Parity (PPP) would you use to come up with a forecast of the future exchange rate: Absolute PPP or Relative PPP? As part of your answer, explain the difference between the two versions of the theory C b) Use the appropriate version of the PPP to compute a forecast of the exchange rate as of 5 years from now. Show all work