Suppose the price indexes in Mexico and the U.S., which both began the year at...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Suppose the price indexes in Mexico and the U.S., which both began the year at 100, are at 160 and 120, respectively, by the end of the year. If the exchange rate began the year at $0.25/M$ and ended the year at $0.2/M$. What is the real exchange at the end as a direct quote in the U.S.? (Home country = U.S. & Foreign country = Mexico)
a. $0.2667/M$
b. $0.1875/M$
c. $0.15/M$
d. $0.3333/M$
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
