Answer to Question #124149 in Macroeconomics for ryan

Question

If the exchange rate changes from $0.11 = R1, to $0.12 = R1, the rand depreciated.

Answer 1

R1 = $0.11

R1 = $0.12

Rand depreciation = {Change in the market price/ Original market price} times 100%

Change in the market price = ${0.12-0.11}

                                           =$0.01

Therefore;

Rand depreciated               = {$0.01/$0.11} times 100%

                                           = 0.11%