Question: Please explain in detail both questions. please include graphs for question no.1 thank you International Finance Sample Questions #2 1. Prove that the real exchange

Please explain in detail both questions. please include graphs for question

Please explain in detail both questions. please include graphs for question no.1 thank you

International Finance Sample Questions #2 1. Prove that the real exchange rate is constant when the market expects relative PPP to prevail. 2. Other things being equal, in a world of highly integrated financial markets but less integrated markets for goods and services, is real interest parity more or less likely to hold true, as compared with nominal interest parity? Explain

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