The Australian Financial Review contains a table showing Australian exchange rates or you can

find exchange rates on the web. Use either source to answer the following questions.

a. Does this table show nominal or real exchange rates? Explain.

b. What are the exchange rates between Australia and the United States and between Australia

and Japan? Calculate the exchange rate between the United States and Japan.

c. If Australian inflation exceeds US inflation over the next year, would you expect the dollar to

appreciate or depreciate relative to the US dollar?