1. This is an exercise in R. It also requires some peer review. And it is worth 30 points. For this exercise, you are first asked to search for the following variables in WDI dataset (for your reference, the exact indicator names are provided in parenthesis):

• real effective exchange rate (PX.REX.REER)
• external balance (NE.RSB.GNFS.KN)
  1. Copy and paste the R Script that you wrote for this exercise. Include every single line, so I can also run it on my end if needed. (15 points)

You are then asked to compute the coefficient of correlation between the above variables for the US from 2001 to 2019.

1. What is the coefficient of correlation between real effective exchange rate and external balance for the US from 2001 to 2019? (2.5 points)