Question
Suppose last year, the inflation in the U.S. was 4% and in Thailand was 20%. The exchange rate was B25/$. This year the exchange rate
Suppose last year, the inflation in the U.S. was 4% and in Thailand was 20%. The exchange rate was B25/$. This year the exchange rate has moved to B35/$. What is the real exchange rate? (The U.S. is the home country.)
A. 0.62
B. 0.82
C. 0.87
D. 1.21
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The New Microfinance Handbook A Financial Market System Perspective
Authors: Joanna Ledgerwood, Julie Earne, Candace Nelson
1st Edition
0821389270, 978-0821389270
