Question
The exchange rate between the U.S. dollar and the British pound is 0.20 (0.20 pound per dollar). In England, the price level is 1.0 and
The exchange rate between the U.S. dollar and the British pound is 0.20 (0.20 pound per dollar). In England, the price level is 1.0 and the interest rate is 20%. In the U.S., the price level is 0.5 and the interest rate is 8%. The inflation rate in both countries is zero.
how to calculate the real exchange rate between U.s Dollar and british pound .
Can you show me step by step
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Principles of Economics
Authors: Gregory Mankiw
7th edition
128516587X, 978-1285165875
