1.Refer to the models and theories that were reviewed in class to describe in a clear and...
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Question:
1.Refer to the models and theories that were reviewed in class to describe in a clear and succinct way the market relationships that link price increases (inflation), interest rates and exchange rates. In particular, explain the following concepts:
a.The law of one price
b.Absolute PPP
c.Relative PPP
d.Fisher Effect
e.International Fisher Effect
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