The dollar appreciated by 25% and now buys 100 yen That would give you the old buying power at 80 yen. And that would mean that the yen depreciated by 20%. And the rate of change of the exchange rate is also -20%. Find the rate of change of the direct exchange rate of the yen in the US.
The dollar appreciated by 25% and now buys 100 yen That would give you the old buying power at 80 yen. And that would mean that the yen depreciated by 20%. And the rate of change of the exchange rate is also -20%. Find the rate of change of the direct exchange rate of the yen in the US.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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100%
The dollar appreciated by 25% and now buys 100 yen
That would give you the old
And that would mean that the yen
And the rate of change of the exchange rate is also -20%.
Find the rate of change of the direct exchange rate of the yen in the US.
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