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Percentage change in the real value of the new zealand

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Reference no: EM132671336

Suppose the New Zealand dollar value changed from US$ 0.70 at the beginning of the year to US$ 0.72 at the end of the year. The U.S. inflation is 8% and New Zealand inflation is 2% this year.

(a) What is the percentage change in the real value of the New Zealand dollar over the year? Show your calculations.

Reference no: EM132671336

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