Assume relative ppp holds how much did the norwegian krone, Financial Management

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Assume relative ppp holds how much did the norwegian krone

Suppose that inflation in Norway was 2% and in Germany it was 5%.

A. Assume Relative PPP holds. How much did the Norwegian krone (NKK) strengthen relative to euro?

B. If the euro weakened relative to the NKK by 8%, what was the magnitude of the real depreciation of the euro relative to the NKK?

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Financial Management: Assume relative ppp holds how much did the norwegian krone

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Financial Management: Assume relative ppp holds how much did the norwegian krone

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