Today, the annual nominal interest rate is 4% in Singapore and 5.5% in New Zealand. If the uncovered interest parity holds, ________________Group of answer choicesthe 12-month forward rate rises.the Singapore dollar is expected to depreciate against the NZ dollar in 12 month.the Singapore dollar is expected to appreciate against the NZ dollar in 12 month.the current spot rate falls.

The annual nominal interest rate is 6% in the euro area and 4% in New Zealand. Suppose that there is no change in the expected future exchange rates, and the UIP holds initially.If the spot exchange rate depreciates today, _______.[Hint: see page 4 of lecture 4A,  question 4 of In-class Quiz - Week 5B]Group of answer choicesthe foreign return in terms of NZD rises.the foreign return in terms of NZD falls.the domestic return falls.the domestic return rises.

Today, the RBNZ permanently rises in the level of the NZ money supply. In the long run, nominal interest rates in NZ _______. In New Zealand, today's spot exchange rate  ________ the expected future exchange rate.Group of answer choicesremains unchanged; rises by a larger magnitude thanfalls; rises by a larger magnitude thanrises; falls by a larger magnitude thanremains unchanged; falls by a larger magnitude than

Suppose that the annual growth rate of nominal money supply is 4% in Japan and 2% in Singapore, and the annual growth rate of real GDP is 4% in Singapore and 2% in Japan.According to the monetary model of exchange rate, the Japanese Yen would __________ against the Singapore dollar on an annual basis in the long run.Group of answer choicesdepreciate approximately by 4%appreciate approximately by 4%depreciate approximately by 6%appreciate approximately by 6%

Suppose that the annual growth rate of nominal money supply is 1% in New Zealand and 5% in the Australia, and the annual growth rate of real GDP is 2% in New Zealand and 4% in Australia. According to the monetary model of exchange rate, the New Zealand dollar would __________ against the Australian dollar on an annual basis in the long run.

Given that S(AUD/SGD) = 1.0000, which of the following real exchange rates for Q(AUD/SGD) would be the worst scenario for Singaporean tourists going to Australia?Group of answer choices0.80000.90001.20001.1000