Question: Question-10 (5 Points) Suppose that, at a certain real exchange rate, a country's net exports exceed its net capital outflows. Is the equilibrium exchange rate

Question-10 (5 Points) Suppose that, at a certain real exchange rate, a country's net exports exceed its net capital outflows. Is the equilibrium exchange rate higher or lower than this level? Explain both in words and with a graph. (You can solve this question by hand)

Question-11 (5 Points) Suppose you win the lottery. You have the choice between receiving the 25 annual payments of $1 million with the first payment happening immediately or an immediate (up-front cash) payment of $17 million. Determine the present value difference between the two options given the interest rate of 5%.(You can solve this question by hand)

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