(a) (4 points) In September 2008, the Great Financial Crisis erupted with the collapse of Lehman Brothers. i. Can you fi

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A 4 Points In September 2008 The Great Financial Crisis Erupted With The Collapse Of Lehman Brothers I Can You Fi 1 (237.28 KiB) Viewed 67 times

(a) (4 points) In September 2008, the Great Financial Crisis erupted with the collapse of Lehman Brothers. i. Can you find what happened to the euro in terms of depreciation/appreciation relative to the dollar? ii. What was the trend in the previous two years? (b) (6 points) In January 2018, the value of the exchange rate was 0.81993 EUR/USD. Suppose that the price of pecorino cheese in Italy was 24 euros per kilo at that date and that it didn't change from January 2018 until January 2020. i. Using the information in the graph, compute the USD value of Italian pecorino cheese at both dates. Did Italian pecorino cheese become less or more expensive in terms of US dollars? ii. If instead you know that the overall change in price in Italy from January 2018 to January 2020 was 15%, how would your answers change?