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The nominal exchange rate is 15 euros per dollar, the domestic price level is 6 dollars per can of beer, and the foreign price level
The nominal exchange rate is 15 euros per dollar, the domestic price level is 6 dollars per can of beer, and the foreign price level is 2 euros per kilo of sugar. a. What is the real exchange rate (make sure to state the correct units)? (2) b. If the domestic price level rises to 8 dollars per can of beer, what must the nominal exchange rate become if the real exchange rate remains unchanged
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