Question: Please help me out with these question: Question 1: Use the DD-AA model to examine the effects of a one-time rise in the foreign price

Please help me out with these question:

Question 1:

Use the DD-AA model to examine the effects of a one-time rise in the foreign price level, P*.If the expected future exchange rate rises immediately in proportion to P* (in line with PPP), show that the exchange rate will also appreciate immediately in proportion to the rise in P*.If the economy is initially in internal and external balance, will its position be disturbed by such a rise in P*?

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