Solve problems 1-3

Problem 1:
a)
The nominal exchange rate E¥/$= 200/250 =0.8
b)
The nominal exchange rate E$/¥= 250/200 =1.25
c)
a) For 1 dollar spent on goods in US , it will take $0.8 spent on same goods in china
b) For 1 ¥ spent on goods in china, it will take $1.25spent on same goods in US.
Problem 2
a)
The expected percentage change in E¥/$= 2/3.5=0.6%
b)
The expected percentage change in E$/¥= 3.5/2=1.75%
c)
The...