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Chrome File Edit View History Bookmarks People Tab Window Help 6 . $ 7 64% Mon 12:08 AM Q ... Lab 9 (Question 7) ~ Lyryx Learning Inc laecon1.lyryx.com/student-servlets/LabServlet?ccid=3693 Question 7 [14 points] Suppose that in 2010, the price levels in the United States and Canada were 100. By 2015, the price level in the United States has increased to 240, while the price level in Canada rose to 210. Suppose the exchange rate between two countries was 1USD = 1.3CAD Note: Please round your answers to 2 decimal places. a) Find the inflation rate of the United States. the United States's inflation rate = 0% b) Find the inflation rate of Canada. Canada's inflation rate = 0% c) What was the 2010 real exchange rate (from the perspective of Canada)? 2010 real exchange rate = 0 d) What must the new nominal exchange rate have been in 2015 (from the perspective of Canada) if the real exchange rate remained constant? 2015 nominal exchange rate = 0 e) Suppose Canada has a fixed exchange rate system against the American dollar. The initial nominal exchange rate is fixed. As a result, did Canada's real exchange rate appreciate or depreciate? Real exchange rate will (Select here) ) Would you expect Canada's net exports to rise or fall as a result? Net exports will (Select here) g) Is the Canadian dollar overvalued or undervalued? Canadian dollar is (Select here) Official Time: 0:08:53 SUBMIT AND MARK SAVE AND CLOSE JUL 20 TALK