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Suppose that the rate of inflation in Switzerland is 5.0%, and the rate of inflation in the United States is 1.9%. If the CHF appreciates
Suppose that the rate of inflation in Switzerland is 5.0%, and the rate of inflation in the United States is 1.9%. If the CHF appreciates relative to the USD by 2.0% in real terms, then which of the following would be closest to the magnitude of the nominal appreciation (+) or depreciation () of the CHF?
a. 1.01%
b. 4.89%
c. +5.10%
d. +0.98%
e. 1.10%
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