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1. Testing the IFE. Describe a statistical test for the IFE.

2. Impact of barriers on PPP and IFE. Would PPP be more likely to hold between the United Kingdom and Hungary if trade barriers were completely removed and if Hungary's currency were allowed to float without any government intervention? Would the IFE be more likely to hold between the United Kingdom and Hungary if trade barriers were completely removed and if Hungary's currency were allowed to float without any government intervention? Explain.

Financial Management, Finance

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