What should happen over the year to the swiss franc

Reference no: EM131251274

1. Suppose Russia inflation rate is 100 percent over one year but the inflation rate in Switzerland is only 5 percent. According to relative PPP, what should happen over the year to the Swiss franc exchange rate against the Russian ruble?

2. Discuss why it is often asserted that exporters suffer when their home currencies appreciate in real terms against foreign currencies and prosper when their home currencies depreciate in real terms.

Reference no: EM131251274

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