1. Use the information below to answer question 1: %AM = 5 %AV = 1 %AY = 3 i= 4 %AP' = 6 NX = -100 Capital inflows = 300 Assume the real exchange rate is constant Investment = 500 a. Calculate the domestic inflation rate b. Calculate the ex post interest rate c. Calculate the growth of the nominal exchange rate (e) d. Capital outflows e. Domestic saving

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