CFA CFA Level 1 Question of the Week: Level 1 – Macroeconomics

Question of the Week: Level 1 – Macroeconomics

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    • Avatar of pinkmonkeypinkmonkey
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        Are there any ways to remember this kind of formula?

      • Avatar of MarkMeldrumMarkMeldrum
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          The correct answer is Option C. 

          The real exchange rate can be approximated by:

          %ΔSd/f + CPIf – CPId or by %ΔSP/B + CPIP – CPIB

          The change in the real exchange rate would then be approximately 9% + 1.88% – 1.02% ≈ 9.86%.

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