Question: In early August 2002 (the exact date is a state secret), North Korea reduced the official value of the won from $0.465 to $0.0067. The

In early August 2002 (the exact date is a state secret), North Korea reduced the official value of the won from $0.465 to $0.0067. The black market value of the won at that time was $0.005.

a. By what percentage did the won devalue?

b. Following the initial devaluation, what further percentage devaluation would be necessary for the won to equal its black market value?

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a Using Equation 21 the won devalued 0067... View full answer

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