To Calculate the Multilateral Effective Exchange Rate for a Nation

question 147

Multiple Choice

To calculate the multilateral effective exchange rate for a nation for each trading partner:

• A) add the share of trade to the percent change in the exchange rate and add the sums.
• B) divide the share of trade by the percent change in the exchange rate and add the dividends.
• C) subtract the share of trade from the percent change in the exchange rate and add the differences.
• D) multiply the share of trade by the change in the exchange rate and add the products.