Suppose the pound depreciates from $1.29 at the start of the year to $1.05 at the end of the year. Inflation during the year is 18% in England and 6% in the U.S. What percentage is the real depreciation (-) or real appreciation of the pound during the year? (Round your answer to two decimal places. Input only numbers as your answer. For instance, for a final answer of -50%, the answer you should put in the blank is -50.00..

Suppose the pound depreciates from $1.29 at the start of the year to $1.05 at the end of the year. Inflation during the year is 18% in England and 6% in the U.S. What percentage is the real depreciation (-) or real appreciation of the pound during the year? (Round your answer to two decimal places. Input only numbers as your answer. For instance, for a final answer of -50%, the answer you should put in the blank is -50.00..

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

ChapterP2: Part 2: Exchange Rate Behavior

Section: Chapter Questions

Problem 3Q

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