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1. Provide an example of the exports effect on the demand for Fijian dollar. 2. What happens if there is a shortage or a surplus

1. Provide an example of the exports effect on the demand for Fijian dollar.

2. What happens if there is a shortage or a surplus of Fijian dollars in the foreign exchange market?

3. What is interest rate parity and what happens when this condition doesn't hold?

4. What is purchasing power parity and what happens when this condition doesn't hold?

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