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Author Question: By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate ... (Read 158 times)

nummyann

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on: Jun 30, 2018
By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from 1.10/ to 1.00/, the U.S. tradable basket from 500 to 600 and the Euro-Area tradable basket from 550 to 580?
 a. The real exchange rate rises approximately by 20.
  b. The real exchange rate rises approximately by 3
  c. The real exchange rate falls approximately by 3
  d. The real exchange rate falls approximately by 20
  e. The real exchange rate falls approximately by 18

Question 2

By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from 1.10/ to 1.00/, the U.S. tradable basket from 500 to 600 and the Euro-Area tradable basket from 550 to 580?
 a. The real exchange rate rises approximately by 18.
  b. The real exchange rate rises approximately by 20.
  c. The real exchange rate rises approximately by 3
  d. The real exchange rate falls approximately by 3
  e. The real exchange rate falls approximately by 20


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Tonny

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Reply #1 on: Jun 30, 2018
Answer to Question 1

.D

Answer to Question 2

.E


nummyann

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

amandalm

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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