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Using R-Studio, estimate a regression equation to determine the effect of the real interest rates, the exchange rate and the GDP growth rate on the

Using R-Studio, estimate a regression equation to determine the effect of the real interest rates, the exchange rate and the GDP growth rate on the Merchandise trade (% of GDP). (All codes and regression output should be provided). NOTE: R-Studio should only be used for obtaining the regression output and the regression equation. (i) Write down the regression equation.

Year

Merchandise trade (% of GDP)

Real interest rates (%),

GDP growth (annual %)

Official exchange rate (per US$).

2000

150.28

10.05

-1.4

182.43

2001

149.12

16.63

2.3

187.32

2002

144.60

13.36

1.1

190.67

2003

146.56

9.81

-0.6

193.88

2004

157.91

7.27

1.6

198.31

2005

162.57

6.42

-2

199.88

2006

62.06

-58.33

5.1

200.19

2007

63.64

5.91

7.2

202.35

2008

69.65

4.44

1.6

203.63

2009

60.78

13.56

3.9

203.95

2010

66.33

9.79

3.8

203.64

2011

78.56

11.91

5.3

204.02

2012

84

8.83

5.4

204.36

2013

77.98

14.11

3.7

205.39

2014

71.66

15.26

1.7

206.45

2015

61.76

9.54

0.7

206.45

2016

64.45

11.99

3.8

206.50

2017

64.89

10.67

3.7

206.50

2018

79.10

16.36

4.4

207.72

2019

108.37

7.30

5.4

208.50

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