9708/13 Economics Oct Nov 2018 Online Test | Cambridge AS and A Level MCQ
Country X trades with only two countries, Nigeria and Malaysia.
80% of Country X’s trade is with Nigeria and 20% is with Malaysia.
The original value of the trade-weighted exchange rate index is 100.
The value of Country X’s currency against the Nigerian Naira rises by 10%. The value of Country X’s currency against the Malaysian Ringgit rises by 50%.
What will be the value of Country X’s new trade-weighted exchange…