a.Discuss the effect of the currency depreciation on trade flows of the country

b. Write down the formula for interest parity condition. If the domestic interest rate decreases, will the domestic currency appreciate or depreciate? Assume investors does not change their expectations

c. How does nominal exchange rate, domestic prices and foreign prices affect the real exchange rate?

d. What are the limitations of GDP per capita growth as a development indicator? Provide at least two drawback