Question: Computing real exchange rates Consider a bundle of consumer goods that costs $ 9 0 in the United States. The same bundle of goods costs
Computing real exchange rates
Consider a bundle of consumer goods that costs $ in the United States. The same bundle of goods costs CNY in China.
Holding constant the cost of the bundle in each country, compute the real exchange rates that would result from the two nominal exchange rates in the following table.
tabletableCost of Bundle in US Cost of Bundle in ChinaDollarsYuan
tableNominal Exchange RateYuan per dollarBundles of Chinese goods per bundle of US goods
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