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In January 2012 the spot exchange rate for the euro was 1.40$/ the euro-wide CPI was 107.0 and the U.S. CPI was 108.1. In July 2013 the spot exchange rate for the euro was 1.31$ the euro-wide CPI was 110.1, and the US CPI was 111.8.
A. Based on this information, in nominal terms did the euro appreciate or depreciate against the dollar? what was the rate of appreciation depreciation of the euro relative to the dollar?
B. What were the rates of consumer price inflation in the United States and in the EMU?
C. Based on this information did the euro experience a real appreciation or a real depreciation against the dollar? What was the rate of real appreciation or depreciation?
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