1. The dollar appreciated by 25% relative to the yen and the direct exchange rate is now 1 in the US. Find the old exchange rate prior to the dollar appreciation. 2. Find the rate of appreciation of the yen. 3. Find the rate of change of the direct exchange rate of the yen in the US.

1. The dollar appreciated by 25% relative to the yen and the direct exchange rate is now 1 in the US. Find the old exchange rate prior to the dollar appreciation. 2. Find the rate of appreciation of the yen. 3. Find the rate of change of the direct exchange rate of the yen in the US.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter34: International Finance

Section34.3: Fixed Exchange Rates

Problem 3ST

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1. The dollar appreciated by 25% relative to the yen and the direct exchange rate is now 1 in the US. Find the old exchange rate prior to the dollar appreciation.

2. Find the rate of appreciation of the yen.

3. Find the rate of change of the direct exchange rate of the yen in the US.

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Step 2: 1. Calculate the old exchange rate of Yen prior to appreciation.

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Step 3: 2. Find the rate of appreciation of the yen.

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Step 4: 3. Find the rate of change of the direct exchange rate of the yen in the US.

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