Blueland’s currency unit, the blue, was worth $1 (U.S.) last year and is worth 90 cents (U.S.)

this year. Redland’s currency unit, the red, was worth 50 cents (U.S.) last year and is worth 45 cents (U.S.)

this year.

Find the percentage change from last year to this year in Blueland’s nominal exchange rate with Redland and in Blueland’s real exchange rate with Redland. (Treat Blueland as the home country.)

Relative to Redland, do you expect Blueland’s exports to be helped or hurt by these changes in exchange rates? (LO1)