Between last year and this year, the CPI in Blueland rose from 100 to 110 and the

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Between last year and this year, the CPI in Blueland rose from 100 to 110 and the CPI in Redland rose from 100 to 105. Blueland's currency unit, the blue, was worth $1 (U.S.) last year and is worth 90 cents (U.S.) this year. Redland's currency unit, the red, was worth 50 cents (U.S.) last year and is worth 45 cents (U.S.) this year.
Find the percentage change from last year to this year in Blueland's nominal exchange rate with Redland and in Blueland's real exchange rate with Red-land. (Treat Blueland as the home country.) Relative to Redland, do you expect Blueland's exports to be helped or hurt by these changes in exchange rates? Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

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