A deposit is a sum of money placed or kept in a bank account, usually to gain interest
Hehs donee estable menudo
Answer:
a. 0.7%
Explanation:
The computation in the change in the real exchange rate is shown below:
Change in the real exchange rate = {(1 + change in nominal spot exchange rate) × (1 + change in the price level of euro-zone or foreign country)} ÷ (1 + change in the price level of US or domestic country) - 1
= {(1 + 7.5%) × (1 + -4%)} ÷ (1 + 2.5%) - 1
= {(1.075) × (0.96)} ÷ (1.025) - 1
= (1.032) ÷ (1.025) - 1
= 0.7%
