Business, 13.05.2021 21:00 antasiaturner7
If the price levels in Canada and Switzerland were each 110 in 1985, and the nominal spot rate was 1.5 SFr per Canadian dollar in 1985, and if the Canadian price level rose to 160 in 1995, the Swiss price level rose to 130 in 1995, and the spot exchange rate was 1.3 SFr per Canadian dollar in 1995: then, which of the following statements is correct:
A. Canadian dollar has only appreciated in nominal terms between 1985 and 1995
B. Canadian dollar has only depreciated in nominal terms between 1985 and 1995
C. Canadian dollar has appreciated in real terms between 1985 and 1995
D. Canadian dollar has depreciated in real terms between 1985 and 1995
Answers: 3
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If the price levels in Canada and Switzerland were each 110 in 1985, and the nominal spot rate was 1...
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