Calculate the real exchange rate

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Reference no: EM13809637

Consider the following data on USDMXN and price levels in the United States and Mexico. Calculate the real exchange rate at t=0.

Price Level (P)

Year USDMXN Mexico United States Real Exchange (q)

-3 13.00 100 100 ?

-2 13.50 105 102 ?

-1 14.00 111 104 ?

0 14.50 116 107 ?

Reference no: EM13809637

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