The relationship between nominal exchange rate and relative prices. The following regression model were obtained. Where Y = exchange rate of the Canadian dollar to the U.S and X = ratio of the U.S...

The relationship between nominal exchange rate and relative prices. The following regression model were obtained. Where Y = exchange rate of the Canadian dollar to the U.S and X = ratio of the U.S consumer price index to the Canadian consumer price index, y represents the relative prices in two countries: Y^ = - 0.912 + 2.250 Xi R^2 = 0.440     se =   0.096 a. Interpret this regression. How would you interpret r^2. b. Does the positive value of Xi make economic sense? What is underlying economic theory