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1. How do price levels and the changes in price level determine a country's exch rate? 2. When are the spot and forward currency

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1. How do price levels and the changes in price level determine a country's exch rate? 2. When are the spot and forward currency markets aligned with interest rates? 3. Are changes in exchange rates predictable? Yation rate Fisher's mo 4. Differentiate between covered and uncovered interest arbitrage. nge

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1 Price levels and changes in price levels can influence a countrys exchange rate through the mechanism of purchasing power parity PPP According to PPP theory the exchange rate between two currencies ... blur-text-image

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