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Suppose that last week's exchange rate is 12.5 pesos to the dollar and this week's exchange rate is 8 pesos to the dollar.
a. What is the price of a $50 item in pesos?
b. What is the price of a p100 items in dollars?
c. Has a dollar appreciated or depreciated?
d. Show how the changes affect X_us and IM_us and GDP. (x=export, IM=import)
e. Using the information above why would a country want to depreciate its currency?

International Economics, Economics

  • Category:- International Economics
  • Reference No.:- M9490251

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