Microeconomics (MindTap Course List)
10th Edition
ISBN: 9781285859484
Author: William Boyes, Michael Melvin
Publisher: Cengage Learning
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Question
Chapter 22, Problem 1E
To determine
To find:
The exchange rate between the U.S. and Canadian dollars
Expert Solution & Answer
Explanation of Solution
Under gold standards, every country have a fixed value in terms of gold. Such method helps to maintain fixed exchange rates between countries.
Under the gold standard, if the
USD per CD
Economics Concept Introduction
Gold standard exchange rate system:
Gold standard exchange rate system is a system in which a country's currency has a value directly linked with gold.
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Students have asked these similar questions
Find the following cross rates.
a) Chinese Yuan/Japanise Yen (i.e. how many Chinese Yuan are needed to buy 1 Janapise Yen?)
b) UK Pound/Mexican Peso (i.e. how many Pounds are needed to buy 1 Peso?)
In France, one kilogram of macadamia nuts costs 10.5Euro and 10 Dollars in Canadian in Canada. According to the law of one price, the expected exchange rate between the Euro and the Canadian would be_____
1.5Euro/$
0.12Dollar/Euro
1.67 Dollar/Euro
0.67 Euro/Dollar
IN US$
PER US$
FRI
THURS
FRI
THURS
Americas
Argentina
0.0172
0.0172 58.278 58.2427
peso
Brazil real
0.2431
0.2401
4.1127
4.1655
Canada dollar
0.7619
0.7612
1.3126
1.3138
Chile peso
0.001407 0.001404
710.7
712
The above table shows U.S.-dollar foreign-exchange rates in New York trading
(Oct. 19, 2019). Source: Wall Street Journal. Which currency depreciated from
Thursday to Friday? Which currency appreciated?
Chapter 22 Solutions
Microeconomics (MindTap Course List)
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Similar questions
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