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10) Consider the following information on Mexico's trade. Thirty percent of the trade is conducted with country A; 35% of trade with country B, 15%
10) Consider the following information on Mexico's trade. Thirty percent of the trade is conducted with country A; 35% of trade with country B, 15% of trade with country C, and 10% with country D. If the peso appreciates 10% against country A, depreciates 30% against country B, and depreciates 15% against country C and appreciates 20% against country D, then the effective trade-weighted real exchange rate experiences aa) 6.75% appreciation b) 18.75% depreciation c) 6.75% depreciation d) 18.75% appreciation
a) 6.75% appreciation
b) 18.75% depreciation
c) 6.75% depreciation
d) 18.75% appreciation
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