You observe the following current rates and prices today: - the spot exchange rate today: AU$2.00 per euro, - the one-year nominal interest rate on bank deposits in Australia: i() = 3%. - the one-year nominal interest rate on bank deposits in Germany:i(euro) = 5%. - the one-year forward rate: AU$1.90 per euro. Explain what will happen to the current spot exchange rate, E($/euro), (increase, decrease, or no change) if the forward rate and the nominal interest rates in two countries remain the same. The answer should have the change in the demand for or the supply of euros in the foreign exchange market and the reason(s) for the change(s). The exact number for the new exchange rate, and the spot market demand and/or supply figures are not required. BI U x2 x lil H ABC 123) 3C