This question considers long-run policies in Argentina, the home country, relative to Brazil. Assume Argentina's money growth rate is currently 4% and its inflation rate is 2%. Brazil's money growth...

Extracted text: This question considers long-run policies in Argentina, the home country, relative to Brazil. Assume Argentina's money growth rate is currently 4% and its inflation rate is 2%. Brazil's money growth rate is 6% with 3.25% inflation rate. The world real interest rate is 0.75%. For the following questions, use the conditions associated with the general monetary model where money demand depends on the nominal interest rate. Define the nominal exchange rate E as Argentine pesos per Brazilian real. 1. Calculate the growth rate of real income in Argentina, report the percentage number (so if the answer is 5% report "5") 2. Calculate the growth rate of real income in Brazil, report the percentage number (so if the answer is 5% report "5") 3. What is the interest rate differential between Argentina and Brazil 4. Calculate the expected depreciation rate of the Argentinian peso relative to the Brazilian Real