The Impact of "e" 7 points) Gondor and Rohan two fictional countries and major trading partners. In Rohan, the spot rate for buying Gondor's currency increases. What is the effect on the following (again, to be clear e is from the Rohan perspective): Cost of a Tuition bill for a student from Rohan that must study at a Gondor university (increase/decreaseo change) The Financial Account of Gondor Price level in Gondor Cost of future Rohan FDI into Gondor (increase/decreaseo change) Value of current Gondor FDI already in Rohan (increase/decreaseo change) Cost for a Rohan firm in repaying debt in Gondor's currency (increase/decreaseo change) The stock price of Gondor firms with a large percentage of its sales in Rohan (increase/decreaseo change) Compute the value of the chant Currency Values and Trade (3 Points) In our pretend world of Game of Thrones there are two countries - Braayos and Pentos - that are engaged in trade. A Braavos firm called Syrie Forels ships a good "Swords from Braavos to Pentos for sale. In Pentos, each Sword sells for 1,950 Silver Dollars (the currency of Pentos). In Braavos, each Sword costs 215 Gold Coins to produce (Gold is the currency in Braavos). Assume that the Braavos firm Syrie Forels has 100 swords it wants to sell in Pentos. How much money in Gold would the firm make (or lose) on the sale at an exchange rate of 0.10 Gold coins per Silver Dollar? I Prices (3 Points) In 2020, the price for silver in the U.S. was $15 and 315 Rand in South Africa. In 2040, you are told that the US has had 75% inflation over the period and South Africa had 285%. What should the exchange rate be in 2040 (using e from the US perspective)? Triangular Arbitrage (3 points) Imagine a world of three different hypothetical currencies: Korean Won, Japanese Yen, and Vietnamese Dong. Let us look at the following sets of exchange rates for these currencies. 11 Won Per Yen 220 Dong per Yen 0.040 Won per Dong (1) Start and end with 1 Won. How many Won can one gain by moving through the other currencies once (c.g. one round)