1. Assume that: S200 time period. Calculate the dollar value of euro in 2010, i.e., calculate...

 

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1. Assume that: S200 time period. Calculate the dollar value of euro in 2010, i.e., calculate ). [Hint: %AS (2)-$55] [5 Points] So Facts: Calculations: Answer: - $0.6896, also dollar appreciated vis--vis euro by 20% over 2008-2010 Graph: ; Formulas: 2. At the start of this course, the value of euro was approximately equal to $1.2322 and stayed around this rate until last week. However, on 7/6/2010 (yesterday), the value of euro was about $1.2623. In your opinion, what could have caused this euro appreciation vis--vis the U.S. dollar (provide at least 2 reasons)? Support your answer graphically using a simple currency market for these currencies. Please label all curves. [5 Points] Explanation: 1. Assume that: S200 time period. Calculate the dollar value of euro in 2010, i.e., calculate ). [Hint: %AS (2)-$55] [5 Points] So Facts: Calculations: Answer: - $0.6896, also dollar appreciated vis--vis euro by 20% over 2008-2010 Graph: ; Formulas: 2. At the start of this course, the value of euro was approximately equal to $1.2322 and stayed around this rate until last week. However, on 7/6/2010 (yesterday), the value of euro was about $1.2623. In your opinion, what could have caused this euro appreciation vis--vis the U.S. dollar (provide at least 2 reasons)? Support your answer graphically using a simple currency market for these currencies. Please label all curves. [5 Points] Explanation: