Question

If the dollar falls by 20% against the euro and rises by 10% against the yen, which of the following values for European and Japanese trade with the United States are consistent with a 10% increase in the effective exchange rate of the United States?

Answer 1

Answer:

Europe: 50% Japan 50%

Europe: 40% Japan 60%

Europe: 60% Japan 40%

None of these values is consistent with this increase

Explanation: