Questiоns 35-39 аre bаsed оn the fоllowing informаtion: In October 2013, there is a consensus in the capital market that the annual inflation rate is likely to be 3.5% in US and -1.5% in China for the next two years. Based on this information, answer the following questions regarding your prediction on foreign exchange rate. According to the above information, [l1] (USD or Chinese Yuan?) is expected to depreciate in value in year 2014 if parity relations hold. (2 points)