Use the information in the chart to calculate the real exchange rate between the U.S. dollar and the Indian rupee. Round to the nearest whole number. rupees/dollar U.S. price index Indian price index What was the real exchange rate in 2014? real exchange rate: What was the real exchange rate in 2015? real exchange rate: 2014 2015 61 67 99.9 100.5 112 122 2016 72 101.1 128 rupees/dollar rupees/dollar

Use the information in the chart to calculate the real exchange rate between the U.S. dollar and the Indian rupee. Round to the nearest whole number. rupees/dollar U.S. price index Indian price index What was the real exchange rate in 2014? real exchange rate: What was the real exchange rate in 2015? real exchange rate: 2014 2015 61 67 99.9 100.5 112 122 2016 72 101.1 128 rupees/dollar rupees/dollar

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 1DQ

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In 2001, the United Kingdoms economy exported goods worth 192 billion and services worth another 77 billion. It imported goods worth 225 billion and services worth Â£66 billion. Receipts of income from abroad were 140 billion while income payments going abroad were 131 billion. Government transfers from the United Kingdom to the rest of the world were 23 billion, while various U.K government agencies received payments of 16 billion from the rest of the world. Calculate the U.K. merchandise trade deficit for 2001. Calculate the current account balance for 2001. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
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So, what has happened to the USD-EUR exchange rate over the past year or two? Can you tell anything about what you would do from looking at the trends? Has the USD appreciated or depreciated vs. the EUR
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