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Use the tollowing infermation to answer questions 13-15. Suppose the annual inflation rate in the US is expected to be 3.5 %, while it is

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Use the tollowing infermation to answer questions 13-15. Suppose the annual inflation rate in the US is expected to be 3.5 %, while it is expected to b 6,00 % in Australia The current spot rate for the Australian Dollar CAD) is S07552 13. According to Purchasing Power Parity, estimate the expected pencentage change in the of the AD during a one-year period L 4.167% appreciation b. 2.358%appreciation c. 4.167% depreciation d. 2.358% depreciation 14. According to Purchasing Power Parity, estimatc expected value of the AD after one ye a $0.7237 b. $0.7374 c. $0.7880 d $0.7223 15. Suppose the value of the AD is $0.7457 after one year, Which country has experiend in real purchasing power? a Australia b. US

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