Macro Economics Question

Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University College of Administrative and Financial Sciences Assignment 4 Macroeconomics (ECON201) Course Name: Macroeconomics Student’s Name: Course Code: ECON201 Student’s ID Number: Semester: 1st CRN: For Instructor’s Use only Instructor’s Name: Students’ Grade: 00 / 10 Level of Marks: High/Middle/Low General Instructions – PLEASE READ THEM CAREFULLY • • • • • • • • • The Assignment must be submitted on Blackboard (WORD format only) via the allocated folder. The due date for Assignment 1 is 25/05/2024. Assignments submitted through email will not be accepted. Students are advised to make their work clear and well-presented, marks may be reduced for poor presentation. This includes filling in your information on the cover page. Students must mention the question number clearly in their answers. Late submissions will NOT be accepted. Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be accepted. Assignment 4 In your own words, answer the following questions: 1- In 250 words, discuss the Flow of Capital. (5 marks) 2- Solve the following question. (5 marks) The price of a tall Starbucks Latte in the US and Mexico is as follows P = $2 in U.S P* = 16 pesos in Mexico e = 12 pesos per $ A- What is the price of a U.S. latte in pesos? B- Calculate the real exchange rate. C- interpret your answer?