currency Y depreciate against USD by _________% Let’s say currency Y used to be at 1=$1 USD on fixed peg, now it changed to 1.25 = $1USD, how much has currency X depreciate
currency Y depreciate against USD by _________% Let’s say currency Y used to be at 1=$1 USD on fixed peg, now it changed to 1.25 = $1USD, how much has currency X depreciate
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 14RQ: What does it mean to say that a currency appreciates? Depreciates? Becomes stronger? Becomes weaker?
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- currency Y
depreciate against USD by _________%
Let’s say currency Y used to be at 1=$1 USD on fixed peg, now it changed to 1.25 = $1USD, how much has currency X depreciate?
Expert Solution
Step 1
Depreciation is the decrease in the value of the currency in terms of other currency.
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