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During 2005, the Chinese yuan exchange rate moves from 7.7/$ to 6.5/$. At the same time, U.S. inflation was approximately 2% in contrast to Chinese

During 2005, the Chinese yuan exchange rate moves from 7.7/$ to 6.5/$. At the same time, U.S. inflation was approximately 2% in contrast to Chinese inflation of about 5%. Please answer following two questions: 1. By how much did the nominal value of the Chinese yuan change during 2005? 2. By how much did the real value of the yuan change over this period?

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