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SHORT ANSWER QUESTIONS OUESTION 9 Explain how PPP can be derived from the supply and demand model of exchange rate determination. Draw diagrams to illustrate

SHORT ANSWER QUESTIONS

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OUESTION 9 Explain how PPP can be derived from the supply and demand model of exchange rate determination. Draw diagrams to illustrate your answers. QUESTION 10 What is the rationale for using PPP as a currency trading rule. QUESTION 10. Long PP as QUESTION 18 2. What are the no-arbitrage conditions for: (0) Two-point arbitrage () Three-point arbitrage

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