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a) If prices are 20% higher in the UK than in the USA and the exchange rate is 1.2 US dollars per British pound, what

a) If prices are 20% higher in the UK than in the USA and the exchange rate is 1.2 US dollars per British pound, what is the real exchange rate?

b) If a country has an unemployment problem, what changes to that country's exchange rate would be warranted?

c) If a country has an inflation problem, what changes to a country's exchange rate would be warranted?

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