What hypotheses must be satisfied for the real exchange rate, Macroeconomics

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What hypotheses must be satisfied for the real exchange rate

Problem

Based on the content presented in this chapter, answer what the following items request:

a. Comment on the statement: "an increase in productivity causes the real exchange rate to appreciate."

b. What hypotheses must be satisfied for the real exchange rate parity to be verified?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What hypotheses must be satisfied for the real exchange rate

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