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Let q denote the real exchange rate and qt the value of q at time t. Suppose that you have run the following regression using

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Let q denote the real exchange rate and qt the value of q at time t. Suppose that you have run the following regression using annual data, Qt = \"+Bqt-1 +51: and found the estimated value of B to be 0.45. Explain whether and to what extent this result supports or rejects the empirical validity of PPP

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