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Countries A and B have relative stable output growth rates, 9;; = 3.50% and pa = 1.50%, and money supply growth ratesJ pm = 4.50%

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Countries A and B have relative stable output growth rates, 9;; = 3.50% and pa = 1.50%, and money supply growth ratesJ pm = 4.50% and g = 3.00%. The nominal interest rate on the currencyAdenorninated bends is Lg = 5.00%. Use the monetary approach to exchange rate to determine the following. The expected world real interest rate, r* The nominal interest rate on currencyBdenorninated bonds, i3 -%. The expected depreciation rate of currency A relative to currency B, aegis Ease Currency A is expected to against currency B

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