How does the figure change when it is based on a single year

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Reference no: EM131220865

For 43 countries, given Figure plots the difference between a country's inflation rate and the U.S. inflation rate, and the percentage change in the U.S. exchange rate against the country's currency.

The inflation rates and exchange rate changes are averages over 1980-2009.

Redo the figure using inflation rates and exchange rate changes in a single year, 2010. (Data are available at the text Web site.) How does the figure change when it is based on a single year rather than 30 years? What explains the differences?

1174_Figure-Inflation and nominal exchange rates.jpg

Reference no: EM131220865

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