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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

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):

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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