Suppose the spot exchange rate between US $ and Australian dollar and inflation rate as per the below table $ AUD 1.5 1 spot exchange rate today The inflation rate of year 1 0.05 0.04 The inflation rate of year 2 0.04 0.03 The inflation rate of year 3 0.03 0.03 What is the expected exchange rate at the end of the third year? (1 AUD$ to US $) What is the expected exchange rate at the end of the third year? (1 US $ to AUD$) How much is the expected change in the value of the exchange rate (I AUD/US $) (increase or decrease?) The AUD against the US $ is excepted to appreciate, to depreciate, or to have no change? Choose... Choose... Choose... Choose