Problem Set 3 xinmiao

# Problem Set 3 xinmiao - Problem Set 3 Question 1 a DOLLAR...

• Homework Help
• 10

This preview shows page 1 - 5 out of 10 pages.

Problem Set 3 Question 1 a) The bar chart above ranks prices ( US dollar ) in different countries, the values range from 1.46 to 6.35 increasingly. T he country with lowest price is Egyp t, and the highest price is S witzland. b) 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 DOLLAR PRICE IN 2017 JANUARY

Subscribe to view the full document.

- 500 0 500 1000 1500 2000 2500 3000 Philippines Taiwan Mexico Vietnam Switzerland Portugal Norway Japan Germany Netherlands CostaRica Canada Euroarea CzechRepublic Estonia SouthKorea SaudiArabia Australia Peru Indonesia China Turkey Sweden Thailand Pakistan Russia Egypt Ukraine % INCREASE IN DOMESTIC PRICE
T h e bar chart above shows the increment in percentage term in domestic price and we can see how Venezuela can be categ orized as outlier which causes the whole data to be inconsistent. 3) - 25 - 20 - 15 - 10 - 5 0 5 10 15 20 25 %INCREASE BELOW 20%

Subscribe to view the full document.

The scatter plot above shows that the change in the real exchange rate is greater than the nominal exchange rate. B ecause e= ( EP ) /P* = E* ( P/ P*) , It is equal to the nominal exchange rate times the domestic price level divided by the foreign price level. - 0.6 - 0.4 - 0.2 0 0.2 0.4 0.6 0.8 - 2 0 2 4 6 8 10 12 14 REALEXCHANGERATEDEPRECIATION NOMINAL EXCHAGE RATE DEPRECIATION SCATTER PLOT FOR ALL THE COUNTRIES

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern