Multiple Choice
Suppose that the dollar real exchange rate falls by 10% against the euro, 20% against the pound, and 25% against the yen. If the United States trades equally with each country, what is the percentage decline in the real effective exchange rate?
A) 22.5%
B) 18.3%
C) 15.1%
D) 20.3%
Correct Answer:
Verified
Correct Answer:
Verified
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