DP Economics Questionbank

Calculate the value of the Mexican peso (US$ per MX$) in 2015. Enter your result in Table 3.

Using information from Figure 5, sketch an exchange rate diagram to show how the change in Mexico’s spending on imports in 2010 would have affected its exchange rate (US$ per MX$), ceteris paribus.

Assume that the dollar/yen exchange rate is in equilibrium. Using the functions, calculate the cost, in dollars, of a motorbike which costs ¥552 640.

Define the term depreciation indicated in bold in the text (paragraph 1).

Explain two reasons why a government might prefer a floating exchange rate system for its currency.

Calculate the quantity of EU€ she will receive for her US$300 000.

Calculate, in US$, the loss made by Tanya as a result of these transactions.

Calculate the equilibrium exchange rate for the US$ in terms of the gamma.

If a visitor to Gardia from the US buys a towel that costs 23 gamma, calculate the cost in US$.

Calculate the additional cost of paying back the loan in gamma in 2019, due to the interest and the change in the exchange rate.

Using Figure 2, calculate how many US$ are needed to buy one gamma at the new exchange rate.