7. Computing real exchange rates Consider a basket of consumer goods that costs $72 in Canada. The same basket of goods costs MXN 224 in Mexico. Holding constant the cost of the basket in each country, compute the real exchange rates that would result from the two nominal exchange rates in the following table. Cost of Basket in Cost of Basket in Nominal Exchange Canada Mexico Rate Real Exchange Rate (Dollars) (Pesos) (Pesos per dollar) ( Baskets of Mexican goods per basket of Canadian goods) 72 224 14.00 72 224 28.00