1. The dollar appreciated by 25% relative to the yen and the direct exchange rate is now 1 in the US. Find the old exchange rate prior to the dollar appreciation. 2. Find the rate of appreciation of the yen. 3. Find the rate of change of the direct exchange rate of the yen in the US.
1. The dollar appreciated by 25% relative to the yen and the direct exchange rate is now 1 in the US. Find the old exchange rate prior to the dollar appreciation. 2. Find the rate of appreciation of the yen. 3. 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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1. The dollar appreciated by 25% relative to the yen and the direct exchange rate is now 1 in the US. Find the old exchange rate prior to the dollar appreciation.
2. Find the rate of appreciation of the yen.
3. Find the rate of change of the direct exchange rate of the yen in the US.
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