(i) The regression result of the error correction model is shown below where DCP=log (CP)-log (CP,-) and DEXRATE=log(EXRATE,)-log (EXRATE,_) . Dependent Variable: DEXRATE Method: Least Squares Date: 09/26/21 Time: 18:56 Sample (adjusted): 2010M03 2021M08 Included observations: 138 after adjustments Coefficient Std. Error Variable DCP U(-1) C R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-statistic) t-Statistic Prob. -0.203159 0.070313 -2.889373 0.0045 0.042793 -3.127628 0.0022 -0.133841 -0.000899 0.002394 -0.375256 0.7081 0.136457 0.123664 0.027920 0.105235 299.5245 Hannan-Quinn criter. 10.66632 Durbin-Watson stat 0.000050 Mean dependent var S.D. dependent var Akaike info criterion Schwarz criterion -0.001796 0.029825 -4.297457 -4.233821 -4.271597 2.033614 Explain what is the variable U(-1) in the EViews output of the error correction model? [2] (j) Interpret the slope coefficient of the U(-1). [2]

(i) The regression result of the error correction model is shown below where DCP=log(CPt)log(CPt1)andDEXRATE=log(EXRATEt)log(EXRATEt1). Dependent Variable: DEXRATE Method: Least Squares Date: 09/26/21 Time: 18:56 Sample (adjusted): 2010M032021M08 Included observations: 138 after adjustments Explain what is the variable U(1) in the EViews output of the error correction model? [2] ()) Interpret the slope coefficient of the U(-1). [2] (i) The regression result of the error correction model is shown below where DCP=log(CPt)log(CPt1)andDEXRATE=log(EXRATEt)log(EXRATEt1). Dependent Variable: DEXRATE Method: Least Squares Date: 09/26/21 Time: 18:56 Sample (adjusted): 2010M032021M08 Included observations: 138 after adjustments Explain what is the variable U(1) in the EViews output of the error correction model? [2] ()) Interpret the slope coefficient of the U(-1). [2]