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The nominal exchange rate

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Over a period of time, Alexis (a U.S. resident) notes that the nominal exchange rate (USD/EUR) has decreased by 3%, the price level in the Eurozone has increased by 5%, while the price level in the United States has increased by 6%. Compute the change in the real exchange rate and interpret your results.

 

 

Reference no: EM13949748

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The nominal exchange rate : Over a period of time, Alexis (a U.S. resident) notes that the nominal exchange rate (USD/EUR) has decreased by 3%, the price level in the Eurozone has increased by 5%, while the price level in the United States has increased by 6%. Compute the chang..
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