Suppose you are a currency speculator trying to forecast what
will happen to the value of the dollar over the next year. Suppose
all of our usual theories hold (uncovered, covered and real
interest rate parities, absolute and relative purchasing power
parities, as well as the Fisher effect for nominal interest
rates).
For each of the separate cases below,
use the information in that case to compute the expected
depreciation of the dollar , or state if there is not...