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Asymmetric information is a situation where the participants in a transaction are not equally well informed
Faimus answered the question on February 25, 2019 at 17:39
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Date-----Exchange rate
January 2017----EURUSD 1.100
December 2017----EURUSD 1.144
Take USD as the home currency.
According to purchasing power parity which currency area should have had the higher rate of inflation by 2017 and by how much?
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d)
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a) Calculate to 4 decimal place the new exchange rate after a 2% increase in the value of the dollar given an exchange rate of EURUSD 1.1 .
b) Given the following exchange rate, calculate the GBPEUR rate to 4 decimal places.
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GBPUSD 1.2970
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