Country Share of $ per FX $ per FX(currency) Trade in 2009 in 2010Canada (dollar) 36% 0.9225 0.9643Mexico (peso) 28% 0.0756 0.0788China (yuan) 20% 0.1464 0.1473Japan (yen) 16% 0.0105 0.0112a. Compute the percentage change from 2009to 2010 in the four U.S. bilateral exchangerates (defined as U.S. dollars per units offoreign exchange, or FX) in the table pro-vided.b. Use the trade shares as weights to computethe percentage change in the nominal effec-tive exchange rate for the United Statesbetween 2009 and 2010 (in U.S. dollars perforeign currency basket).

Consider the United States and the countries ittrades with the most (measured in trade vol-ume): Canada, Mexico, China, and Japan. Forsimplicity, assume these are the only fourcountries with which the United States trades.Trade shares and exchange rates for these fourcountries are as follows:Country Share of $ per FX $ per FX(currency) Trade in 2009 in 2010Canada (dollar) 36% 0.9225 0.9643Mexico (peso) 28% 0.0756 0.0788China (yuan) 20% 0.1464 0.1473Japan (yen) 16% 0.0105 0.0112a. Compute the percentage change from 2009to 2010 in the four U.S. bilateral exchangerates (defined as U.S. dollars per units offoreign exchange, or FX) in the table pro-vided.b. Use the trade shares as weights to computethe percentage change in the nominal effec-tive exchange rate for the United Statesbetween 2009 and 2010 (in U.S. dollars perforeign currency basket).c. Based on your answer to (b), what hap-pened to the value of the U.S. dollaragainst this basket between 2009 and2010? How does this compare with thechange in the value of the U.S. dollar rela-tive to the Mexican peso? Explain youranswer

Suppose that a new trade agreement between Australia and Canada causes the exchange rate to change from CAD 0.9 /AUD to CAD 0.8 /AUD. Which currency has depreciated as a result of this trade agreement and by what percentage? CAD by 11.1% AUD by 11.1% AUD by 12.5% Neither currency has depreciated CAD by 12.5%

Based on the table provided, answer the fol-lowing questions:a. Compute the U.S. dollar-yen exchange rateE$/¥ and the U.S. dollar-Canadian dollarexchange rate E$/C$ on June 25, 2010, andJune 25, 2009

On 10 January 2016, you observed the following exchange rates: Canada-Australia: C$1.2 = AU$1 Japan-Australia: 120 yen = AU$1 Mexico-Australia: 8 pesos = AU$1 India-Australia: 45 rupees = AU$1 If the exchange rate on January 10, 2017, is AU$1 = 10 Mexican pesos, then: Question 3 Answer a. the Australian dollar has appreciated 20% against the Mexican pesos. b. the Australian dollar has depreciated 20% against the Mexican pesos. c. the Mexican peso has depreciated 10% against the Australian dollar. d. the Mexican peso has appreciated 10% against the Australian dollar.

Year-to-year movements in real exchange rates between two countries with fixed nominal exchange ratesGroup of answer choiceschanges in relative rates of inflation.changes in relative growth rates of output.changes in relative net exportsnone of the above