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Suppose the Deutsche mark appreciates from $2.50 at the beginning of the year to $2.2727 at the end of the year. Inflation during the year
Suppose the Deutsche mark appreciates from $2.50 at the beginning of the year to $2.2727 at the end of the year. Inflation during the year is 5% in the U.S. and 3% in Germany. What is the real appreciation (-) or real deprectiation (+) of the Deutsche mark during the year?
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