Question: The following regression analysis was conducted for the inflation rate information and exchange rate of the Hong Kong dollar: ehks = do + ai 1

The following regression analysis was conducted for the inflation rate information

The following regression analysis was conducted for the inflation rate information and exchange rate of the Hong Kong dollar: ehks = do + ai 1 + IUS 1 + IHong Kong - 1] + + u where u is the error term, enks is the percentage change of the value of Hong Kong dollars. Then For purchasing power parity to hold, ao = 0 and a1 = 0. For purchasing power parity to hold, 20 = 0 and a1 = 1. For purchasing power parity to hold, 20 = 1 and a1 = 0. For purchasing power parity to hold, ao = 1 and a1 = 1. The following regression analysis was conducted for the inflation rate information and exchange rate of the Hong Kong dollar: ehks = do + ai 1 + IUS 1 + IHong Kong - 1] + + u where u is the error term, enks is the percentage change of the value of Hong Kong dollars. Then For purchasing power parity to hold, ao = 0 and a1 = 0. For purchasing power parity to hold, 20 = 0 and a1 = 1. For purchasing power parity to hold, 20 = 1 and a1 = 0. For purchasing power parity to hold, ao = 1 and a1 = 1

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