2. Go to The Economist website at http://www.economist.com, click on "Print Edition" and scroll down till you see a section titled "Economic and Financial Indicators". Within this you will find economic and financial data on GDP, interest rates, inflation, trade balances and other variables that affect interest rates, along with exchange rate data from last year and today. Pick any country from that list and using the data from the tables, answer the following questions vis-à-vis the US$.
a) Has the country's currency appreciated or depreciated against the US dollar in the past year? (2 points)
b) Is there real interest rate parity between that country and the US? (2 points)
c) Pick any 3 financial or economic indicator from the table- now considering your answer to part a) above, is the movement of the currency consistent with the data in the indicator tables (for example, if your country's currency has appreciated against the dollar, is that consistent with the inflation or other data from the table. (3 points)
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