Neco Model Questions Vol1 2020 Economics Question 4
Practice objective / multiple choice question 4 from the 2020 Neco Model Questions Vol1 Economics examination.
Country X's export price index (EPI) was 120 in 2019 and rose to 138 in 2020. Its import price index (IPI) was 110 in 2019 and rose to 121 in 2020. The nominal exchange rate (foreign currency per domestic currency) was 0.80 in 2019 and depreciated by 5% in 2020. The real exchange rate (RER) is defined as \(\text{RER}=\frac{\text{EPI}}{\text{IPI}}\times \text{nominal\;exchange\;rate}\). Calculate the percentage change in the real exchange rate from 2019 to 2020, giving your answer to one decimal place.
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About This Question
This is Neco Model Questions Vol1 2020 Economics Question 4. It is one of the objective questions from the 2020 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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