PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 17, Problem 3P
To determine
Identify the percentage change from last year to this year in the nominal and real exchange rates between blue land and red land.
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Between last year and this year, the CPI in Blueland rose from 100 to 106 and the CPI in Redland rose from 100 to 103. Blueland's
currency unit, the blue, was worth $0.75 (U.S.) last year and is worth $0.60 (U.S.) this year. Redland's currency unit, the red, was worth
$0.25 (U.S.) last year and is worth $0.20 (U.S.) this year. Consider Blueland as the home country.
a. Calculate Blueland's nominal exchange rate with Redland.
Instructions: Enter your response rounded to one decimal place.
3.1 red/blue
2.9 red/blue
Last year:
This year:
The percentage change in Blueland's nominal exchange rate from last year to this year is:
Instructions: Enter your response as a whole number. Be certain to enter "0" if required.
0 %
Between last year and this year, the CPI in Blueland rose from 100 to 106 and the CPI in Redland rose from 100 to 103. Blueland's currency unit, the blue, was worth $0.75 (U.S.) last year and is worth $0.60 ( U.S.) this year. Redland's currency unit, the red, was worth $0.25 (U.S.) last year and is worth $0.20 (U .S.) this year. Consider Blueland as the home country. a. Calculate Blueland's nominal exchange rate with Redland. Instructions: Enter your response rounded to one decimal place. Last year. red/blue This year: red/blue The percentage change in Blueland's nominal exchange rate from last year to this year is: Instructions: Enter your response as a whole number. Be certain to enter "0" if required. % b. Calculate Blueland's real exchange rate with Redland. Instructions: Enter your response rounded to two decimal places. Last year: red/blue This year: red/blue The percentage change in Blueland's real exchange rate with Redland from last year to this year is: Instructions: Enter…
Between last year and this year, the CPI in Blueland rose from 100 to 120 and the
CPI in Redland rose from 100 to 115. Blueland's currency unit, the blue, was worth
80 cents (U.S.) last year and is worth 60 cents (U.S.) this year. Redland's currency
unit, the red, was worth 20 cents (U.S.) last year and is worth 15 cents (U.S.) this
year.
Find the percentage change from last year to this year in Blueland's nominal
exchange rate with Redland and in Blueland's real exchange rate with Redland.
(Treat Blueland as the home country.) Relative to Redland, do you expect Blueland's
exports to be helped or hurt by these changes in exchange rates?
Instructions: Enter your responses rounded to one decimal place.
Change in nominal exchange rate:
Change in real exchange rate:
Blueland's exports will be hurt
%
Chapter 17 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
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- Suppose the current CPI is 252 and in 2005 it was 196. A pair of Levi's jeans costs $43 today. Based on the CPIs, what would you expect the 2005 price to have been for the same style of Levis, in a similar retail outlet? Round your answer to two decimal places. 0 $ Click or tap the numbers or use your keyboard to type. If you're not sure, just take a guess. 1 2 3 4 5 6 7 8 9 Donearrow_forwardSuppose the current CPI is 252 and in 2005 it was 196. A pair of Levi’s jeans costs $43 today. Based on the CPIs, what would you expect the 2005 price to have been for the same style of Levis, in a similar retail outlet?arrow_forwardTennis Balls Golf Balls Bottles of Gatorade 2020 price Rs.250 Rs.450 Rs.150 2020 quantity 100 100 200 2021 price Rs.25 Rs.653 Rs.255 2021 quantity 100 100 200 Using a method similar to the CPI, compute the percentage change in the overall price levelarrow_forward
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