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2.5 [Related to Don't let this happen to you on page 678] If we know the exchange rate between country A's currency and country B's
2.5 [Related to Don't let this happen to you on page 678] If we know the exchange rate between country A's currency and country B's currency, and we know the exchange rate between country B's currency and country C's currency, then we can calculate the exchange rate between country A's currency and country C's currency. a. Suppose the exchange rate between the Japanese yen and the Australian dollar is currently 120 = $1 and the exchange rate between the British pound and the Australian dollar is 0.60 = $1. What is the exchange rate between the yen and the pound? b. Suppose the exchange rate between the yen and dollar changes to 130 = $1 and the exchange rate between the pound and dollar changes to 0.50 = $1. Has the dollar appreciated or depreciated against the yen? Has the dollar appreciated or depreciated against the pound? Has the yen appreciated or depreciated against the pound
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