Somebody has bought US Dollar with one-third of his money and Euro with two-third. Dollar has gained value over national currency by D % each month and Euro E % each month. The average monthly infiation rate is Y. Find the percentage loss of him/her at the end of a year. D=3,2 E=3 Y=1,7
Somebody has bought US Dollar with one-third of his money and Euro with two-third. Dollar has gained value over national currency by D % each month and Euro E % each month. The average monthly infiation rate is Y. Find the percentage loss of him/her at the end of a year. D=3,2 E=3 Y=1,7
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter29: Exchange Rates And International Capital Flows
Section: Chapter Questions
Problem 23CTQ: Why would a nation dollarize—that is, adopt another countrys currency instead of having its own?
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1. Somebody has bought US Dollar with one-third of his money and Euro with two-third. Dollar has gained value over national currency by D % each month and Euro E % each month. The average monthly infiation rate is Y. Find the percentage loss of him/her at the end of a year.
D=3,2 E=3 Y=1,7
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