1. For the next question, using the following table. Note that the nominal exchange rate is given initially in dollars per pound.

	US Price Index	UK Price Index	Exchange Rate (Dollars/Pound)
Jan. 1, 2018	100	100	1.50
Jan. 1, 2019	102	105	1.35

a) What is the nominalappreciation or depreciation of the dollar against the pound during 2018? Your answer must state both the percent change and whether the US dollar appreciated or depreciated.

b) What is the inflation rate in the UK?

c) What is the real appreciation or depreciation of the dollar against the pound over 2018?

d)What is the exchange rate on January 1st, 2018, in pounds per dollar?