- 5 Exercise 6 5 Decreased Cost Inflation In The United States Relative To Its Major Trading Partners Is Likely To Grade 1 (42.97 KiB) Viewed 8 times
5. Exercise 6.5 Decreased cost inflation in the United States relative to its major trading partners is likely to Grade It Now Save & Continue Continue without saving Back to Assignment Attempts Average no score out of 1/1 6. Exercise 6.6 Suppose the current spot exchange rate for the Chinese yuan is USD 0.15 per CNY. If the domestic prices of traded goods rise 50% over the next 10 years in China and 35% over the same period in the United States, then, according to the relative purchasing power parity hypothesis, the spot exchange rate for the yuan in 10 years will be approximately: USD 0.20 per CNY USD 0.14 per CNY USD 0.21 per CNY the value of the U.S. dollar. USD 0.23 per CNY