Final answer:
The RQ measures the effectiveness of radiation in causing biological damage, and its maximum value is typically 1.
The RER measures the risk associated with changes in exchange rates, and it can go above 1 when one currency depreciates in value compared to another currency.
Step-by-step explanation:
The RQ, or Relative Biological Effectiveness, measures the effectiveness of different types of radiation in causing damage to biological tissue.
It is calculated by comparing the dose required for a specific type of radiation to produce a certain biological effect with the dose required for X-rays to produce the same effect.
The maximum value for RQ is typically considered to be 1, as it represents the radiation that is most efficient in causing damage to living tissue compared to X-rays. Higher values for RQ indicate radiation that is less efficient in causing biological damage compared to X-rays.
In contrast, the RER, or Relative Economic Risk, measures the risk associated with changes in exchange rates. The exchange rate is the value of one currency compared to another currency.
The RER can go above 1 because it represents a situation where one currency has depreciated or weakened in value compared to another currency. This can occur due to various factors such as economic conditions, interest rates, and market expectations
For example, if the exchange rate between the US dollar and the euro is 1:1, it means that 1 US dollar is equal to 1 euro. If the RER increases to 1.5, it means that the US dollar has depreciated in value compared to the euro, and now 1 US dollar is worth 1.5 euros.
In this case, it would be more expensive for US residents to purchase goods or services from Europe, as they would need to exchange more US dollars for euros.