By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from 1.40/ to 1.60/, the U.S. tradable basket from 2,100 to 2,200 and the British tradable basket from 1,500 to 1,600?
a. The real exchange rate rises by 12.5.
b. The real exchange rate rises by 16.35.
c. The real exchange rate rises by 3.1
d. The real exchange rate falls by 3.1
e. The real exchange rate falls by 12.5
Question 2 - By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from 1.40/ to 1.60/, the U.S. tradable basket from 2,100 to 2,200 and the British tradable basket from 1,500 to 1,600?
a. The real exchange rate rises by 16.35.
b. The real exchange rate falls by 3.1
c. The real exchange rate rises by 3.1
d. The real exchange rate falls by 10.8
e. The real exchange rate falls by 12.5
Question 3 - By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from 1.40/ to 1.60/, the U.S. tradable basket from 2,100 to 2,200 and the British tradable basket from 1,500 to 1,600?
a. The real exchange rate rises by 16.35.
b. The real exchange rate rises by 3.1
c. The real exchange rate falls by 3.1
d. The real exchange rate falls by 10.8
e. The real exchange rate rises by 12.5.
Question 4 - Assume the nominal dollar-per-euro (/) exchange rate appreciates by 2, U.S. prices rise by 5 and Euro-Area prices rise by 3. By approximately how much does the real exchange rate change?
a. 3
b. There is no change.
c. 4
d. 5
e. 6
Quick Reply
