econ

In January 2012, one US dollar was worth 50 Indian rupees. Suppose that over the next year the value of the Indian rupee decreases to 60 Indian rupees to one US dollar. Suppose also that the price level of all goods and services in India, as measured in rupees, falls 20%, so that the Indian price index falls from a value of 100 to 80. At the same time, suppose that the US price level increases by 6%, to 106.

By what percentage did the value of the real exchange rate change over this period? Please give your answer to the nearest whole percentage point.

  1. 👍 0
  2. 👎 0
  3. 👁 685
  1. 9.44%

    1. 👍 0
    2. 👎 0
  2. the answer would be 24, but you have to account for the foreign rates of having different political views so its wrong. the answer is B

    1. 👍 0
    2. 👎 2

Respond to this Question

First Name

Your Response

Similar Questions

  1. Ed tech- Plz, plz help

    The Second Industrial Revolution was not just marked by new inventions. New business practices were invented that transformed America’s economy. Between 1869–1910, the value of American manufacturing rose from $3 billion to

  2. Math

    1.Bryan needs a new backpack. He compares the prices of three different backpacks at a local store to find the best deal. Which purpose of money is Bryan demonstrating? 1.Unit of account. (2.Store of value.) 3.Acceptance of

  3. Educational tech-1 question

    Use the text below written by Connections Education in 2012 to answer the following questions. The Second Industrial Revolution was not just marked by new inventions. New business practices were invented that transformed

  4. accounting

    As of January 1 of the current year, the Grackle Company had accounts receivables of $50,000. The sales for January, February, and March of 2012 were as follows: $120,000, $140,000 and $150,000. 20% of each month’s sales are for

  1. accounting

    Pearson Corporation makes an investment today (January 1, 2012). They will receive $6,000 every December 31st for the next six years (2012 – 2017). If Pearson wants to earn 12% on the investment, what is the most they should

  2. math school g

    salman purchased 8 wood panels for rupees 1500 each for transporting them to his shop he had spend rupees 800 he then gave the panels a veneer wich cost him rupees 8000 he sold 4 panels for rupees 3200 each calculate his total

  3. finance

    swh corporation issued bonds on january 1, 2004. The bonds had a coupon rate of 4.5%, with interest paid semiannually. The face of the bonds is $1000 and the bonds mature on January 1, 2014. What is the instrinsic value (to the

  4. math

    1.a bus is carrying 40 passengers some with 25 rupees ticket and the remaining with 30 rupees ticket. if the total amount collected from these passengers is 1125 rupees. find the number of passengers who have taken 25 rupees

  1. accounting-fory

    On January 1, 2012, Bartell Company sold its idle plant facility to Cooper Inc. for $1,050000. On this date, the plant had a depreciated cost of $735,000. Cooper paid $150,000 cash on January 1, 2012, and signed a $900,000 note

  2. math

    suppose the eggplants at a store in thailand are priced at 1.24 baht per kilogram, where one dollar is worth 1.37 baht. what is the price of the eggplants in dollars per pound? how do you figure this out

  3. math

    The Crabby Apple restaurant lost $2000 in the month of January. If their net worth at the end of the month is -$200. What was the net worth at the beginning of the month?

  4. Eco

    In January 2012, one US dollar was worth 50.0 Indian rupees. Suppose that over the next year the value of the Indian rupee decreases to 59.0 Indian rupees to one US dollar. Suppose also that the price level of all goods and

You can view more similar questions or ask a new question.