are in brackets. Total points: 28 Time allotted: 75 minutes. Q.1 What is the difference between real exchange rate and nominal exchange rate20) L o ods on the other The real exchange rate is qve Ex t The nominal exchange rate is the one good product country against the other represent of the monominal against Q.2 Recall the example of calculating the magnitude of exchange rate depreciation or appreciation in class where we assume that the home exchange rate for = , and Em b , where b> (.e. a depreciation of home currency). Particularly, the Yen vs. dollar example, where the yen depreciated against the dollar by 25% while the dollar appreciated against the yen by 20%. Under what conditions will the magnitude of the percentage depreciation and percentage appreciation be equal? (3)