During 1995 the Mexican peso exchange rate rose from Mex 5 33 US
During 1995, the Mexican peso exchange rate rose from Mex$5.33/US$ to Mex $7.64/US$. At the same time, U.S. inflation was approximately 3% in contrast to Mexican inflation of about 48.7%.
a. By how much did the nominal value of the peso change during 1995?
b. By how much did the real value of the peso change over this period?

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