The US dollar has appreciated against the Australian Dollar by 21% over the past year

Finance Dec 09, 2020

The US dollar has appreciated against the Australian Dollar by 21% over the past year. Over this period inflation in the USA has been 5.3%, and inflation in Australian has been 2%. By approximately how much has the US dollar appreciated (+) or depreciated (-) IN REAL TERMS against the Australian dollar? of Select one: a. 24.996 b. 17.2% C. 30.0% d. 28.9% e. 2196

Expert Solution

Answer:-

d) 28.9%

Explanation:-

Inflation changes is = 2/5.3 = 0.377358

Us dollar appreciated = 21% + (21%×0.377358)

= 21% + 7.9245% = 28.9%

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote