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Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4. Suppose the real exchange rate
Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4. Suppose the real exchange rate rises 10%, the inflation rate in the domestic country is 6%, and the inflation rate in the foreign country is 4%. By what percentage does the nominal exchange rate change?
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