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The table below provides the information on the monthly USD/EUR exchange rate: January 2021 1.22 USD/1EUR July 2021 1.18 USD/1EUR Assume that consumer basket cost

The table below provides the information on the monthly USD/EUR exchange rate:

January 2021	1.22 USD/1EUR
July 2021	1.18 USD/1EUR

Assume that consumer basket cost about 95 EUR in Europe and 100 USD in U.S. and price does not change during the period. Calculate the real exchange rate. Determine how the real exchange rate changed. Interpret the results.

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