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Calculation of exchange rate.

Using the exchange rates and prices in the tables above:

1. Illustrate what was the Peso price for a U.S. burger in 2001?

2.What was the PPP exchange rate of the Argentine Peso in 2001? Peso____/US$

3.Was the Peso overhauled or undervalued in 2001 and by how much?_____by what%_____

4.What was the Peso price of a US burger in 2002?Peso________

5.What was the PPP exchange rate of the Argentine Peso in2002? Peso___________/US$

6.Was the Peso overvalued or undervalued in 2002, by how much? ________by______%

Between 2001 and 2002, relative to the dollar:

1.Has the real value of the Peso appreciated or depreciated & by how much?___________(HINT: the real value of the currency is the ratio of its burger price over the U.S. burger price)

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M919547

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