n a hypothetical world, between last year and this year, the CPI in Germany rose from 115 to 130 and the CPI in China rose from 95 to 110. Germany's currency unit, the Euro(EUR), was worth 0.79(EUR) per Canadian dollar last year and is worth 0.7(EUR) per Canadian dollar this year. China's currency unit, the Yuan(CNY), was worth 6.8(CNY) per Canadian dollar last year and is worth 6.67(CNY) per Canadian dollar this year.

a)Find the percentage change from last year to this year in Germany'snominalexchange rate with China (measured as # of Euros/1 China Yuan).

NOTE:Please keep as much precision as possible throughout your calculations and round off your final answer totwodecimal places.

percentage change ?%

b)Find the percentage change from last year to this year in Germany'srealexchange rate with China. Again, assume that we are measuring the nominal exchange rate portion as the # of Euros/1 China Yuan.

NOTE:Please keep as much precision as possible throughout your calculations and round off your final answer totwodecimal places.

percentage change ?%

c)Relative to China, do you expect Germany's exports to be helped or hurt by these changes in exchange rates?

Helped

or

hurt