2. Does purchasing power parity exist? In addition to testing for purchasing power parity (PPP) by piotting individual points (combinations of interest rate differentials and changes in the spot rate of the "foreign" currency between two countries) on a graph, you can also test for ppp using regression analysis. In particular, consider the following regression model: ef=ae+a1(1+1f1+Ik1)+ Where ef is the percentage change in the foreign currency value, IA is the inflation rate of the home currency, and If is the inflation rate of the foreign currency, a0 and a1 are coefficients to be estimated, while is the error term. If the theory of Ppp were true, what would be the values of a0 and at?(tint: Assume the average value of the error term is 0. ) a0=1,a1=1a0=0,a1=1a0=0,a1=0a0=1,a1=0