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Suppose that in the regression s(t+1)-s(t) = a + b* (i(t) i*(t) ) +u(t) the estimate of b is negative. a) What exchange rate trading

Suppose that in the regression s(t+1)-s(t) = a + b* (i(t) i*(t) ) +u(t) the estimate of b is negative. a) What exchange rate trading strategy would you design to exploit this fact. b) Is b

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