To Calculate the Multilateral Effective Exchange Rate for a Nation

Multiple Choice

To calculate the multilateral effective exchange rate for a nation for each trading partner:

A) add the share of trade to the percent change in the exchange rate and add the sums.
B) divide the share of trade by the percent change in the exchange rate and add the dividends.
C) subtract the share of trade from the percent change in the exchange rate and add the differences.
D) multiply the share of trade by the change in the exchange rate and add the products.