Suppose that you have the following data on exchange rates and prices: a. Calculate the percentage change

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Suppose that you have the following data on exchange rates and prices:

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a. Calculate the percentage change in E, P, and PF for each of the years after 2005.

b. Where was inflation higher (home or overseas) over the sample period?

c. How well does relative PPP hold in this example?

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International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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Question Posted: Apr 25, 2024 01:00 AM

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Suppose that you have the following data on exchange rates and prices: a. Calculate the percentage change

Question:

E P PF 2005 0.49 100 100 2006 0.52 106 102 2007 0.55 112 104 2008 0.56 115 105 2009 0.60 120 106

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International Economics

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