The nominal exchange rate and the real exchange rate

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1. What is the difference between the nominal exchange rate and the real exchange rate? When a newspaper article uses the term "the exchange rate," is it typically referring to the nominal exchange rate or the real exchange rate?

2. If the exchange rate between the yen and the dollar changes from ¥80 = $1 to ¥90 = $1, has the yen appreciated or depreciated against the dollar? Has the dollar appreciated or depreciated against the yen?

Reference no: EM131305218

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