What happens to the nominal and real can exchange rates

Reference no: EM132175127

Question - If the General Price level (p) in the U.S was 100 in comparison to 85 (P) in Canada on June 30, 2015, what would be the real CAN/US exchange rate? IF inflation takes place in Canada, causing its general price level to rise to 120, what happens to the nominal and real CAN/US exchange rates? If a Canadian tourist travels to the United States on that day, which would offer the traveler greater buying power?

Reference no: EM132175127

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