5 PPP 20 points Suppose that you have the following data on exchange rates: E P PF %AE %AP %APF %A Real Exchange Rate 2013
5 PPP 20 points Suppose that you have the following data on exchange rates: E P PF %AE %AP %APF %A Real Exchange Rate 2013 0.8 100 2014 0.83 104 2015 0.85 108 2016 0.88 113 2017 0.85 114 2018 0.87 119 109 a) (7 points) Complete the table b) (5 points) Was ination higher domestically or in the foreign country during the sample period? How do you know? 0) (8 points) For what year does relative PPP hold the best? How do you know
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