Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 8

FOREIGN EXCHANGE RATES-THE YEN FOR DOLLARS The Federal Reserve System Web site, www.federalreserve.gov/releases/H10/hist, provides historical foreign-exchangerate data for a wide variety of currencies. Look at the data for the Japanese yen from 1995 to the present. Assume that you were in Tokyo every New Year's from January 1, 2000, to this year and bought a bento (box lunch) for 1000 yen each year. Convert this amount to dollars using the yen-dollar exchange rate for each January since 2000, and plot the dollar price of the bento over time. Has the dollar appreciated or depreciated against the yen What was the least amount in dollars that your box lunch cost The most