Did the canadian dollar experience a real appreciation

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The price levels in Canada and Switzerland were each 110 in 1995, and the nominal spot rate was 1.5 Swiss francs per Canadian dollar in 1995.

The Canadian price level rose to be 160 in 2005, the Swiss price level rose to be 130 in 2005, and the spot exchange rate was 1.3 Swiss francs per Canadian dollar in 2005.

Did the Canadian dollar experience a real appreciation or a real depreciation (relative to the Swiss franc) between 1995 and 2005? (As part of your answer, use a calculation of the real exchange rate.)

Reference no: EM131213663

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