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What is the real exchange rate of the usd

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Assume that you are in Australia. The current spot exchange rate of the US dollar (USD) against the Australian dollar (AUD) is 0.6815 USD per AUD (USD/AUD). Suppose that the current Consumer Price Indexes (CPI) in the US and Australia are 120 and 130 respectively. What is the real exchange rate of the USD/AUD? Show your working clearly and completely.

Reference no: EM133233617

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