You observe the following current rates: - the spot exchange rate today : AU$3.0 per euro,- the (one-year) nominal interest rate on bank deposits in Germany:i(euro) = 3%,- the expected the spot exchange rate in one year: AU$3.06 per euro, - the expected annual inflation rate in Germany: pi(euro) = 2%. Assume that the uncovered interest parities hold, and there are no transaction costs. Under the purchasing power parity, calculate the expected annual inflation rate in Australia. Paragraph B IEEE Rich text areaPress ALT-F10 for toolbar. Press ALT-O for help