Please help answer all bullet points and the example. Provide explanations for better understanding.

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Chapter 15: Exchange rates in the long-run This chapter is quite recent in your memory and I will not write a lot. But study the following broad headings and the equations (15.1-15.19 in your text book and power point slides on TRACS) that relate the different economic variables to exchange rates and purchasing power parity. Specically study the following key themes: An introduction to purchasing power parity Uses of purchasing power parity Tests of purchasing power parity The formula for the real exchange rate The Monetary approach to exchange rates VVVVV Additional application of purchasing power parity Example: Relative purchasing power parity predicts that the growth rate in the nominal exchange rate is equal to the difference between domestic and foreign ination (refer to equation 15.3 in your text book). The following table depicts the dollar euro exchange rate between period t-I and period t and ination rates in the US. (17\