2. Employing regression analyses to answer the following questiona. Does exchange rate volatility affect bilateral trade?b. You need to choose a pair of country first before being able to answer the...

2. Employing regression analyses to answer the following question
a. Does exchange rate volatility affect bilateral trade?
b. You need to choose a pair of country first before being able to answer the question in (a) above. Run a regression and interpret the relevant coefficient along with its statistical and economic significance. You will need to add control variables for the regression. They should be changes in GDP and changes in inflation.