Question

In: Economics

Suppose the U.S.​ dollar-euro exchange rate is 1.1 dollars per​ euro, and the U.S.​ dollar-Mexican peso...

Suppose the U.S.​ dollar-euro exchange rate is 1.1 dollars per​ euro, and the U.S.​ dollar-Mexican peso rate is 0.1 dollars per peso. What is the​ euro-peso rate?

____ euros per Mexican peso. ​ (Enter your response rounded to three decimal​ places.)

Solutions

Expert Solution

Dollar / Euro = 1.1 USD / EURO

Dollar / Mexico Peso = 0.1 USD / PESO

EURO / Mexico PESO = (1 / 1.1)*(0.1) = 0.0909 ~ 0.091 EURO / Mexico PESO

Rahul Sunny answered 2 years ago
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