Under which situation would you expect a domestic currency to appreciate? Select one: a. Real rates of return in the domestic economy are higher on a comparative basis b. The domestic economy is experiencing a relatively stronger GDP growth rate on a comparative basis Oc. The domestic economy is experiencing an abnormally high inflation rate on a comparative basis d. Both A and B e. Both B and C Using the expectations approach to the determination of interest rates, calculate the expected interest rate on a one-year investment that will be available in 12 months' time (Exh), given the following data: current rate of return on a one-year-to-maturity (oh) instrument is 3% per annum . current rate of return on a two-year-to-maturity (ola) instrument is 5% per annum Select one: O a. 7.00 per cent O b. 7.75 per cent O c. 6.75 per cent O d. 8.25 per cent