Country X has currency C1 and Country Y has currency C2. The nominal exchange rate C2/C1 and GDP deflator P for Country X and P* for Country Y for various years is as follows: Year: 2010; nominal exchange rate: 0.58; P=1.88; P* =3.8. Year 2011; nominal exchange rate: 0.79; P=2.06; P*=3.88. Year: 2012; nominal exchange rate:0.95; P=2.16; P*=3.95. Year 2013; nominal exchange rate 1.13; P=2.22; P*=4.3. Assuming C1 is the domestic currency and the previous year is the base year, find the year in which the real exchange rate appreciation is greatest and calculate the percentage increase.
a)The Year=( )and percentage increase=?
b) Assuming C1 is the domestic currency, an increase in E will cause price of C2 in term of C1 to (?)
c) If the value of e decrease, given that E is increasing, then Country Y would be experiencing a (?) rate of inflation compared to Country X
d) if foreign goods are relatively less expensive compared to the domestic goods and assuming that the nominal exchange rate of the currencies is equity, then there is (?) in the real exchange rate.
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 21:10, HannahVance99
Of the roles commonly found in the development, maintenance, and compliance efforts related to a policy and standards library, which of the following has the responsibilities of directing policies and procedures designed to protect information resources, identifying vulnerabilities, and developing a security awareness program?
Answers: 3
Business, 22.06.2019 19:50, hdkdkdbx
Managers in a firm hired to improve the firm's profitability and ultimately the shareholders' value will add to the overall costs if they pursue their own self-interests. what does this best illustrate? a. diseconomies of scale b. principal-agent problem c. experience-curveeffects d. information asymmetries
Answers: 1
Business, 22.06.2019 23:20, QueenNerdy889
You work as the sales manager for a company that sells office supplies to businesses of all sizes. because the profit margins are razor-thin, you need to ensure that you are getting the very best prices on paper, pencils, pens, post-it notes, and other office supplies from the manufacturers. when reviewing the quarterly profit statement, you realize that your costs are higher than they should be, and you trace the higher costs back to an employee who has been lax about getting competitive bids to ensure the lowest prices. when you conduct your research to determine the reason for the higher costs, and take action to bring those costs back down, in which of the key management processes are you taking part?
Answers: 3
Do you know the correct answer?
Country X has currency C1 and Country Y has currency C2. The nominal exchange rate C2/C1 and GDP def...
Questions in other subjects:
Social Studies, 29.03.2021 23:40
Mathematics, 29.03.2021 23:40
Arts, 29.03.2021 23:40
