Suppose canada trades only with these four countries and, Macroeconomics

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Suppose canada trades only with these four countries and

Consider the following hypothetical prices of foreign currencies vis-à-vis the Canadian dollar:

Currency$1995 price$2001 price

Euro$1.37$1.67

U.S. dollar$1.54$1.67

Japanese Yen$161.54$170.83

Australian dollar$1.2$1.15

Suppose Canada trades only with these four countries, and the volume of trade is equally spread across the countries. Calculate the overall nominal exchange-rate index for 2001 that corresponds with these figures, using 1995 as a base year

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Macroeconomics: Suppose canada trades only with these four countries and

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