Multiple Choice
Suppose 60% of U.S. trade is with England and the rest is with Japan. If the dollar rises by 20% against the pound but falls by 20% against the yen, what is the percentage change in the effective exchange rate of the United States?
A) -12%
B) -4%
C) ±0%
D) -8%
Correct Answer:
Verified
Correct Answer:
Verified
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