Question: The Table below shows data for Terrania and its three trading partners A, B, C. Assume that the effective exchange rate index in year

The Table below shows data for Terrania and its three trading partners A, B, C. Assume that the effective exchange rate index in year 1 equals 100, defining the index so that a higher number means a stronger exchange rate the value of the index in year 2 is? (express your answer to 2 decimal places) Share of Terranian Trade 0.4 0.3 0.3 Exchange Rate (units per Terranian Kwacha) 1 3 4 year 1 year 2 Price Level year 1 year 2 Country A Country B Country C Terrania Answer: 2 1 1.1 2 3 1 1.2 1 1.3 1 1

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