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7:09 PM Sat Dec 13 . . . 40% A Textbook Acc | A Rigdon_JOE | A AltruismandF Exam2_Fall2 https://uaz.vi | https://uaz.vi University of MindTap X Chat Thread ng.cengage.com 26 . . . CENGAGE |MINDTAP Q Search this course ? Chapter 13 Homework X Back to Assignment A-7 Attempts Keep the Highest / 3 5. The exchange rate pass-through Suppose a Mexican microwave oven costs MEX$2,100 in Mexico. EI When the exchange rate is 10 pesos for every dollar, compute the equivalent price in dollars and enter it in the top row of the following table. Price in Mexico Equivalent Price in Dollars Exchange Rate (MEX$ (Dollars) $1 = MEX$10 2,100.00 $1 = MEX$8.4 2,100.00 Suppose the exchange rate changes to MEX$8.4 per dollar. This means that the peso relative to the dollar. Compute the new equivalent price of a Mexican microwave oven in dollars and enter this value in the bottom row of the previous table. Suppose that when the exchange rate changes by 16% from 10 pesos to 8.4 pesos per dollar, the price of a Mexican microwave oven in the United States changes from $100.00 to $101.60. This means that exchange rate pass-through exists. Grade It Now Save Continue Continue without saving