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3. During 1995, the Mexican peso exchange rate rose from Mex$5.33/U.S.$ to Mex$7.64/U.S.$. At the same time, U.S. inflation was approximately 3% in contrast to

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3. During 1995, the Mexican peso exchange rate rose from Mex\$5.33/U.S.\$ to Mex\$7.64/U.S.\$. At the same time, U.S. inflation was approximately 3% in contrast to Mexican inflation of about 48.7%. a) By how much did the nominal value of the peso change during 1995? (5 marks) b) By how much did the real value of the peso change over this period

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