Suppose the Swiss Franc Revalues from $0

question 9

Multiple Choice

Suppose the Swiss franc revalues from $0.40 at the beginning of the year to $0.44 at the end of the year.U.S.inflation is 5% and Swiss inflation is 3% during the year.What is the real devaluation ? or real revaluation + of the Swiss franc during the year?

• A)+ 7.9%
• B)- 5.3%
• C)+ 8.1%
• D)- 1.6%

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