Flamraining Tima: 08 38.25 The following table shows the nominal and real exchange rates for two countries and two years [OECD, 2020a,bj. The column names are the country codes (not the currency codes) and the exchange rates are expressed as the amount of the currency per unit of US dollar. Nominal Real CHE Year BEL CHE BEL 1.9768 1.6359 1.0581 0.8524 1989 2005 0.8038 1.2452 0.9013 EBEC'O a Indicate whether the cost of goods in each country has increased, decreased, or remained unchanged, relative to the cost of goods in the United states between 1989 and 2005. BEL: Increased Decreased O Remained unchanged IL CHE: Increased O Decreased O Remained unchanged b. For the year 2005, indicate whether the cost of goods in each country is relatively higher, lower, or equal, to the cost of US goods. L BEL: O Higher O Lower O Equal IL CHE: O Higher O Lower O Equal c. Indicate whether the currencies have appreciated, depreciated, or remained unchanged, against the US dollar in real term. L BEL: Appreciated O Depreciated O Remained unchanged IL CHE: Appreciated O Depreciated O Remained unchanged d. For each countries and each year, what is the ratio P. / P. where P is the price level in the country and P. is the price level in the United States. Round your answer to the nearest fourth decimal Year BEL CHE 1989 Number Number 2005 Number Number e. Answer this question for BEL. If we believe in the theory of purchasing power parity, what is likely to happen after 2005? L Indicate whether the currency of BEL will appreciate, depreciate, or remain unchanged, against the US dollar in nominal term. Appreciate 0 Depreciate O Remain unchanged IL Indicate whether the currency of BEL will appreciate, depreciate, or remain unchanged, against the US dollar in real term. O Appreciate O Depreciate O Remain unchanged IL Which of the following statements are correct? O The price level in BEL will increase faster than the price level in the United States. The price level in the United States will increase faster than the price level in BEL. The price level in the United States will remain the same as the the price level in BEL