Question
Suppose real exchange rate is constant. a) How is growth rate of nominal exchange rate related to foreign and domestic inflation rates? I know this.
Suppose real exchange rate is constant.
a) How is growth rate of nominal exchange rate related to foreign and domestic inflation rates? I know this. Need to know the intuition
Provide intuition for your result.
b) Suppose inflation rate in domestic and foreign economics is 5% and 15% respectively, what is the growth of nominal exchange rate?
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Financial Accounting
Authors: Jan Williams, Mark Bettner, Joseph Carcello
18th Edition
1260247945, 9781260247947
