B C D E F 1 Exercise #3 : Exchange Rate and Inflation/Deflation 2. 3 Country Exchange Rate (Past)* Exchange Rate (Now)* Inflation or US$ 1 = Local Currency? US$ 1 = Local Currency Deflation of Local Decrease(-) or Increase (+)** of Local Currency Valuation 4 5 6 Australia 0.76 0.89 7 Brazil 2.14 1.80 8 Canada 1.13 0.97 9 Switzerland 1.26 1.17 10 China 7.9 7.51 11 Europe 1.26 1.43 12 United Kingdom 1.88 2.05 13 Japan 119 116 14 15 ** [(Exchange Rate(Past) - Exchange Rate(Now)/Exchange rate(Past)]*100 16 17