Suppose that the United States does of its trade with Canada, with the United Kingdom, and with Mexico. If the dollar real exchange rate rises by 10% with Canada, rises by 20% for the United Kingdom, and falls by 10% for Mexico, what is the percentage change in the real effective exchange rate?
A) 11.5%
B) 10%
C) 7.5%
D) -2.5%

Question

Suppose that the United States does  of its trade with Canada,  with the United Kingdom, and  with Mexico. If the dollar real exchange rate rises by 10% with Canada, rises by 20% for the United Kingdom, and falls by 10% for Mexico, what is the percentage change in the real effective exchange rate?
A) 11.5% 
B) 10% 
C) 7.5% 
D) -2.5%

Quizplus · Accepted Answer

The Answer of Suppose that the United States does  of its trade with Canada,  with the United Kingdom, and  with Mexico. If the dollar real exchange rate rises by 10% with Canada, rises by 20% for the United Kingdom, and falls by 10% for Mexico, what is the percentage change in the real effective exchange rate?
A) 11.5% 
B) 10% 
C) 7.5% 
D) -2.5%

Suppose That the United States Does of Its Trade