Question: The data in the following table represents price level changes and interest rate changes over a one-year period for three countries: Astoria, Borgia, and Calistoga.

The data in the following table represents price level changes and interest rate changes over a one-year period for three countries: Astoria, Borgia, and Calistoga. Based on the data, explain what is likely to happen to the for Astorian asters relative to the other two countries€™ currencies over that one-year period. Use supply and demand graphs to support your answer, with prices listed as asters per borg and asters per cali, and quantities representing borgs and calis.

Price Index Price Index Interest Rate Interest Rate Country/ Currency Astoria/aster Borgia/borg Calistoga/cali January J

Price Index Price Index Interest Rate Interest Rate Country/ Currency Astoria/aster Borgia/borg Calistoga/cali January January January January 1, 2016 110 132 168 1, 2016 1, 2015 1, 2015 6 percent 4 percent 4 percent 4 percent 100 120 150 8 percent 6 percent

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