The following table shows the nominal exchange rate between the U S dollar and the euro (U S dollars per euro) at different points in time a) Plot the nominal exchange rate, and determine whether the U S dollar has been appreciating or depreciating with respect to the euro during this period Note t...

The following table is the corrected version in terms of different points in time Period Nominal exchange rate between the US dollar and the euro US dollars per euro November 2012 12953 December 2012 ...

The following table shows the nominal exchange rate between the U.S. dollar and the euro (U.S. dollars

Question:

The following table shows the nominal exchange rate between the U.S. dollar and the euro (U.S. dollars per euro) at different points in time.

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a) Plot the nominal exchange rate, and determine whether the U.S. dollar has been appreciating or depreciating with respect to the euro during this period. Note that the exchange rate is quoted as dollars per euro.

b) Calculate the percentage change in the exchange rate from November 2012 to December 2012 and from January 2013 to February 2013. Comment on the size of these fluctuations.

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