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5) (10 points) What is the equation for the real exchange rate between the dollar and the euro, and explain the implications of a rise

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5) (10 points) What is the equation for the real exchange rate between the dollar and the euro, and explain the implications of a rise or fall in the real exchange? Use the following notation: Real dollar/euro exchange rate = qUSIEU Nominal exchange rate = EM Price of an unchanging basket in US I Pus Price of an unchanging basket in Europe = PEU

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