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Answer all the questions in this section - note the choices in question 10. QUESTION 4 [4 Marks] According to economists there is evidence that

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Answer all the questions in this section - note the choices in question 10. QUESTION 4 [4 Marks] According to economists there is evidence that the Fisher hypothesis can be observed in the data. Explain what is meant by the Fisher hypothesis. Provide the theoretical argument for the predicted relationship delineated in this hypothesis. QUESTION 5 [5 Marks] 5.1 Give a mathematical expression for the uncovered interest parity (UIP) condition, defining Page 2 of 8

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