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If a Regression Analysis Was Run for the AUD/USD Exchange

Question 17

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If a regression analysis was run for the AUD/USD exchange rate and obtained the following coefficients,a1 = 0.8 for (IUS -IA),a2 = 0.5 for (YUS - YA)and a3 = 0.6 for (iUS -iA),explain the meaning of the coefficients.

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The coefficient a1 = 0.8 suggests that a ...

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