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Canada exchange rate

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Reference no: EM131548313

Suppose the nominal U.S.-Canada exchange rate is $1.55 per Canadian Dollar, the U.S. has a 15% inflation, and Canada has 0% inflation. Under these conditions the real U.S.-Canada exchange rate, rounded to the nearest cent, is approximately:

Suppose the U.S.-EU exchange rate is $1.65 per Euro, the U.S. has 5% inflation, and the EU has 10% inflation. Under these conditions the real U.S.-EU exchange rate, rounded to the nearest cent, is approximately:

Not sure how to do these, please help.

Reference no: EM131548313

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