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One year ago, the exchange rate between the pound and the dollar was $1=$1.50. The current exchange rate is $1=$1.32. During the year, the inflation

One year ago, the exchange rate between the pound and the dollar was $1=$1.50. The current exchange rate is $1=$1.32. During the year, the inflation rate was 3% in the U.K. and 7% in the US.



If the current exchange rate is deemed to be in equilibrium condition, was there a change in the real exchange rate between the pound and the dollar?

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