real exchange rate

3. :1. Please express the equation that describe the relation between the reel exchange rate and the nominal exchange rate. What would be expected effect of reel exchange rate depreciation on NX (net export) in terms of domestic currency in short and long run. b. Assume that initially nominal exchange rate is E, = 0,25 (51 = $025) and domestic (Turkey) ination rate is mm = 10% percent while the US ination rate is n55 = 0%. If the domestic currency depreciates and nominal exchange rate decreases from El = 0,25 to E; = 0,2 what would be the percentage change in reel exchange rate. c. Suppose that initially NX (net export) displays 5120 billion decit (5200 billion export and $80 billion import when the '51 = $0,25) and also export elasticity of real exchange rate is -2 and import elasticity of real exchange rate is 0,5. According to given values arr-m = 10%, 1:55 = 0%, E1 = 0,25, 52 = 0,2. What would be nal value of NX in terms of 0