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You Noticed That the Exchange Rate Between the Korean Won

Question 15

Essay

You noticed that the exchange rate between the Korean won and the U.S. dollar has changed considerably. The won/dollar exchange rate has moved from 800 won per dollar to 1000 won per dollar.
a. Has the Korean won appreciated or depreciated with respect to the dollar? By what percentage?
b. By what percentage has the value of the dollar changed with respect to the won?

Correct Answer:

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a. One won was worth 1/800 or 0.00125 do...

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