For 43 countries, Figure 6 5 plots the difference between a countrys inflation rate and the U S inflation rate, and the percentage change in the U S exchange rate against the countrys currency The inflation rates and exchange rate changes are averages over 1980 2009 Redo the figure using inflation ...

The data in Figure 65 describes a strong positive relationship between the difference in infla ...

For 43 countries, Figure 6.5 plots the difference between a countrys inflation rate and the U.S. inflation

Question:

For 43 countries, Figure 6.5 plots the difference between a country€™s inflation rate and the U.S. inflation rate, and the percentage change in the U.S. against the country€™s currency. The inflation rates and exchange-rate changes are averages over 1980-2009. Redo the figure using inflation rates and changes in a single year, 2010. (Data are available at the text Web site.) How does the figure change when it is based on a single year rather than 30 years? What explains the differences?
In Figure 6.5

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...