Compute effects of an appreciation and a depreciation

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Q. Given illustrative data for a company selling its output in a foreign country, compute effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.

Q. Consider ordinary least squares (OLS) between two variables, y and x, in the form y = b0 + b1 x + ε where ε denotes error term. Find the equation of coefficients. Explain your work.

Reference no: EM1358947

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