Explain the movements in the real exchange rate

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Using data from the text Web site, compute the real exchange rate for the Russian ruble against the U.S. dollar for each year from 1992 through 2009.

a. Do a bit of Internet research on Russia and try to explain the movements in the real exchange rate.

b. Do movements in Russia's real exchange rate explain most of the movements in its nominal exchange rate? Explain.

Reference no: EM131220861

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