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The Price Indexes in South Africa and the Eurozone, Which

Question 9

Multiple Choice

The price indexes in South Africa and the Eurozone, which both began the year at 100, are at 117 and 105, respectively, by the end of the year. Which of the following is correct? If the beginning and ending exchange rates, respectively, for the rand are SAR 7.5758 and SAR 8.8889, then the change in the real value of the rand (a " -" indicates a real devaluation) during the year is


A) 0%
B) -5.3%
C) 2.4%
D) -8.2%

Correct Answer:

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