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Describe absolute and relative version of ppp and give

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Questions:

  1. Describe absolute and relative version of PPP and give your unique example for each. No two examples given by a classmate should be the same.
  2. What is the difference between real and nominal exchange rates? Give your unique example for each. No two examples given by a classmate should be the same.
  3. Describe Fisher Effect and International Fisher Effect. Give your unique example for each. No two examples given by a classmate should be the same.
  4. Describe covered interest arbitrage and uncovered interest arbitrage conditions. What is the mechanism at work for each? Give your unique example for each. No two examples given by a classmate should be the same.
  5. Is the forward rate and unbiased predictor of the future spot rate? Explain why or why not.
  6. What is the empirical evidence surrounding the PPP relative and absolute? ( You may want to use the internet to answer this question)

Reference no: EM133576348

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