Question: Identify and explain the basic factors affecting exchange rates in a floating exchange ratesystem. Also, explain how a new restriction on the ability of foreigners

Identify and explain the basic factors affecting exchange rates in a floating exchange ratesystem. Also, explain how a new restriction on the ability of foreigners to buy domestic companies and real estate would affect exchange rate of the domestic currency. Support all your discussions with relevant theory (or diagrammatic illustrations), literature (references)and data/examples)

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