1. Suppose you reserve a hotel room in Madrid for 300$ per night. When you check out, you are charged only 289$ per night. Assuming that the price of the room in euros had not changed, and that the nominal exchange rate had been 0,8 euros/$ when the reservation was made, the nominal exchange rate is ... euros/$.

2. Suppose a car sells for 41190 in the US and 25055 euros in Germany. The nominal exchange rate is 0,7 euro per dollar. Calculate the real exchange rate between U.S. cars and German cars to two decimal places.