During the assigned time period: US dollar appreciated / depreciated (choose one
ID: 2635676 • Letter: D
Question
During the assigned time period:
US dollar appreciated / depreciated (choose one) in real terms against the currency of foreign country.
Mexico
1995
1996
1997
1998
1999
2000
Consumer Price Index:
35.0
34.4
20.6
15.9
16.6
9.5
Exchange Rates:
90.2
18.4
4.2
15.4
4.6
-1.1
Short term interest rates:
48.2
32.9
22.3
27.1
24.6
17.2
United States
1995
1996
1997
1998
1999
2000
Consumer Price Index:
2.8
2.9
2.3
1.5
2.2
3.4
Exchange Rates:
-5.6
4.5
7.7
4.8
-1.6
4.9
Short term interest rates:
5.9
5.4
5.6
5.5
5.3
6.5
Mexico
1995
1996
1997
1998
1999
2000
Consumer Price Index:
35.0
34.4
20.6
15.9
16.6
9.5
Exchange Rates:
90.2
18.4
4.2
15.4
4.6
-1.1
Short term interest rates:
48.2
32.9
22.3
27.1
24.6
17.2
United States
1995
1996
1997
1998
1999
2000
Consumer Price Index:
2.8
2.9
2.3
1.5
2.2
3.4
Exchange Rates:
-5.6
4.5
7.7
4.8
-1.6
4.9
Short term interest rates:
5.9
5.4
5.6
5.5
5.3
6.5
Explanation / Answer
For Mexico:
Inflation rate = CPI(2000)/CPI(1995) -1 =9.5/35 -1 =-72.86%
Change in short term rates =17.2/48.2
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.