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Question 2 a) What is the purchasing power parity approach to exchange rate determination? b) What is exchange rate overshooting? c) What is the asset

Question 2

a) What is the purchasing power parity approach to exchange rate determination?

b) What is exchange rate overshooting?

c) What is the asset market approach to exchange rate determination?

d) In a free market, what determines exchange rates in the long run and the short run?

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