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Using the monetary growth rate model (equation below), calculate the rate of dollar depreciation against the Euro if the following are occurring (all numbers in

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Using the monetary growth rate model (equation below), calculate the rate of

dollar depreciation against the Euro if the following are occurring (all numbers in percent):

image text in transcribed
AEs/E,t = Must - HEUR,t = (Must - BUS,t - (HEURt - EURt Es/ E,t Inflation differential Rate of depreciation of the nominal exchange rate

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