Question: Answer the question 1. What are the differences between the real exchange rate and nominal exchange rate? Write out the expression/equation for the real exchange

Answer the question

1. What are the differences between the real exchange rate and nominal exchange rate? Write out the expression/equation for the real exchange rate. Explain the factors that determine the real exchange rate. Do nominal and real exchange rates always go together? If not, when would nominal and real exchange rate diverge? What is involved 'currency wars? Explain

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