Question: Modify the Excel sheet as follows: a. In 4 new columns (E-H), calculate the percent change for each of these series. b. The percent change

Modify the Excel sheet as follows: a. In 4 new columns (E-H), calculate the percent change for each of these series. b. The percent change in the real exchange rate series is, approximately, equal to some linear function of the other three percent changes (that is, you should be able to add and/or subtract the other 3 columns to get something quite close to the percent change in the real exchange rate). Put this approximation in column I. c. Based on this, decide whether an increase in the real exchange rate represents an increase or decrease in US real purchasing power relative to that of Mexico. Put your answer to this in J1. Submit your modified Excel document as the solutions for this assignment.

Real Narrow Exchange Rate CPI US CPI MX Nominal (peso/$)
1993-11 112.84 61.5408 15.67323 3.1498
1993-12 115.25 61.5408 15.79274 3.1083
1994-01 116.04 61.70964 15.91517 3.1078
1994-02 115.41 61.92068 15.99703 3.1218
1994-03 109.03 62.13173 16.07928 3.3026
1994-04 107.82 62.21614 16.15803 3.3495
1994-05 109.07 62.25835 16.2361 3.3167
1994-06 107.44 62.4694 16.31734 3.3671
1994-07 105.87 62.63823 16.38971 3.4031
1994-08 106.65 62.89149 16.4661 3.3814
1994-09 106.18 63.06033 16.5832 3.4022
1994-10 105.76 63.10253 16.67026 3.4212
1994-11 105.73 63.18695 16.75938 3.4425
1994-12 92.79 63.18695 16.90637 3.9748
1995-01 67.46 63.44021 17.54271 5.6405
1995-02 69.42 63.69346 18.28622 5.6779
1995-03 60.74 63.90451 19.36421 6.777
1995-04 70.5 64.11555 20.90722 6.2285
1995-05 76.59 64.24218 21.78106 5.9741
1995-06 75.55 64.36881 22.47233 6.233
1995-07 78.59 64.36881 22.93045 6.122
1995-08 79.38 64.53764 23.3108 6.2047
1995-09 79.81 64.66427 23.79299 6.3167
1995-10 75.87 64.87531 24.28255 6.7452
1995-11 68.25 64.83311 24.88131 7.6936
1995-12 70.71 64.7909 25.69195 7.687
1996-01 75.34 65.17078 26.61556 7.4806
1996-02 76.3 65.38182 27.23676 7.5183
1996-03 77.14 65.7195 27.83634 7.5682
1996-04 80.41 65.97275 28.62766 7.4694
1996-05 81.92 66.09938 29.14947 7.4368
1996-06 81.98 66.14159 29.62413 7.5648
1996-07 82.33 66.26821 30.04525 7.6179
1996-08 84.32 66.39484 30.44459 7.5143
1996-09 85.24 66.60589 30.93136 7.5441
1996-10 84.14 66.81693 31.31744 7.7345
1996-11 83.18 66.94356 31.79193 7.9119
1996-12 86.48 66.94356 32.80985 7.8769
1997-01 89.42 67.1546 33.65356 7.8289
1997-02 91.6 67.36565 34.21909 7.8023
1997-03 90.89 67.53448 34.64496 7.9562
1997-04 92.54 67.6189 35.01925 7.9059
1997-05 93.15 67.57669 35.33885 7.9037
1997-06 93.12 67.66111 35.6524 7.9498
1997-07 95.07 67.74553 35.963 7.8679
1997-08 97.35 67.87216 36.28277 7.7818
1997-09 98.3 68.04099 36.73467 7.7809
1997-10 97.86 68.20983 37.02824 7.8708
1997-11 94.27 68.16762 37.44248 8.2716
1997-12 98.54 68.0832 37.96707 8.1271
1998-01 99.89 68.20983 38.7931 8.2272
1998-02 97.86 68.33646 39.47226 8.5021
1998-03 97.88 68.46308 39.93464 8.5681
1998-04 99.46 68.58971 40.30827 8.5017
1998-05 99.17 68.71634 40.62935 8.5848
1998-06 96.81 68.80076 41.10957 8.92
1998-07 97.94 68.88517 41.50597 8.899
1998-08 94.13 68.96959 41.90498 9.3712
1998-09 87.03 69.05401 42.58463 10.2192
1998-10 87.55 69.22285 43.19486 10.1594
1998-11 90.71 69.22285 43.95981 9.9685
1998-12 93.56 69.18064 45.03242 9.9067
1999-01 92.92 69.34947 46.16961 10.1279
1999-02 96.23 69.43389 46.79008 10.0057
1999-03 100.12 69.64494 47.22479 9.7324
1999-04 103.64 70.15145 47.65818 9.4304
1999-05 104.86 70.15145 47.94488 9.3955
1999-06 104.21 70.15145 48.2599 9.5146
1999-07 106.29 70.36249 48.57885 9.3699
1999-08 105.97 70.53133 48.85228 9.3979
1999-09 106.82 70.869 49.32432 9.3413
1999-10 104.55 70.99563 49.63672 9.5752
1999-11 107.37 71.03784 50.07814 9.4161
1999-12 108.44 71.03784 50.57981 9.4271
2000-01 108.75 71.24888 51.25897 9.4935
2000-02 110.58 71.67097 51.71365 9.4265
2000-03 112.08 72.2619 52.00035 9.2886
2000-04 111.63 72.30411 52.29621 9.3937
2000-05 111.31 72.38853 52.49171 9.5059
2000-06 107.17 72.76841 52.80263 9.8343
2000-07 112.12 72.93724 53.00861 9.4192
2000-08 115.04 72.93724 53.29989 9.2724
2000-09 114.85 73.31713 53.68924 9.3615
2000-10 113.67 73.44375 54.05895 9.537
2000-11 115.14 73.48596 54.52116 9.5081
2000-12 116.65 73.44375 55.11141 9.4673
2001-01 112.8 73.90805 55.41694 9.7688
2001-02 113.29 74.20352 55.38026 9.7108
2001-03 115.69 74.37235 55.73114 9.599
2001-04 119.55 74.66781 56.01226 9.3276
2001-05 121.88 75.00549 56.14079 9.1475
2001-06 122.99 75.13211 56.27358 9.0881
2001-07 122.21 74.92107 56.12737 9.1682
2001-08 122.48 74.92107 56.45991 9.1332
2001-09 119.29 75.25874 56.98548 9.4253
2001-10 121.19 75.00549 57.24303 9.3391
2001-11 123.99 74.87886 57.45867 9.225
2001-12 125.47 74.5834 57.53824 9.1574
2002-01 126.95 74.75223 58.06939 9.1636
2002-02 127.65 75.0477 58.03206 9.105
2002-03 127.77 75.46979 58.3289 9.064
2002-04 126.22 75.89188 58.64752 9.1649
2002-05 120.75 75.89188 58.76639 9.5099
2002-06 117.18 75.93409 59.05292 9.7671
2002-07 116.44 76.0185 59.22245 9.7792
2002-08 116.28 76.27176 59.44763 9.8389
2002-09 114.17 76.39839 59.80519 10.0708
2002-10 114.46 76.52501 60.06879 10.0941
2002-11 113.73 76.52501 60.5546 10.1952
2002-12 113.77 76.35618 60.8182 10.2251
2003-01 108.77 76.69385 61.06406 10.6223
2003-02 105.07 77.28478 61.23368 10.9447
2003-03 105.16 77.74908 61.62021 10.9053
2003-04 108.69 77.58024 61.72541 10.5887
2003-05 110.66 77.45361 61.52624 10.2528
2003-06 107.88 77.53803 61.57707 10.5028
2003-07 108.94 77.62245 61.66631 10.4581
2003-08 106.01 77.91791 61.8513 10.783
2003-09 104.43 78.17117 62.2195 10.9229
2003-10 101.64 78.08675 62.44764 11.1796
2003-11 102.94 77.8757 62.96596 11.1494
2003-12 101.69 77.79128 63.23665 11.2515
2004-01 104.52 78.17117 63.62967 10.9203
2004-02 103.58 78.59326 64.01029 11.0319
2004-03 104.09 79.09977 64.22719 11.019
2004-04 101.73 79.35302 64.32412 11.2701
2004-05 99.26 79.81732 64.16277 11.5199
2004-06 99.87 80.07057 64.26561 11.3926
2004-07 99.28 79.94395 64.43405 11.4678
2004-08 100.64 79.98616 64.83181 11.3953
2004-09 100.31 80.15499 65.36786 11.487
2004-10 100.73 80.57708 65.82058 11.4037
2004-11 100.76 80.61929 66.38205 11.371
2004-12 102.23 80.32383 66.51917 11.2012
2005-01 101.9 80.49266 66.52153 11.2627
2005-02 103.07 80.95696 66.74316 11.1373
2005-03 102.35 81.5901 67.04399 11.1552
2005-04 102.98 82.13882 67.28276 11.1121
2005-05 104.37 82.0544 67.11373 10.9764
2005-06 106.42 82.09661 67.04931 10.8197
2005-07 108.29 82.47649 67.31172 10.6724
2005-08 107.41 82.89858 67.3921 10.6862
2005-09 105.87 83.9116 67.6622 10.7858
2005-10 106 84.08043 67.82827 10.8354
2005-11 109.66 83.40509 68.31645 10.6715
2005-12 110.77 83.06742 68.73608 10.6266
2006-01 110.9 83.70055 69.13915 10.5422
2006-02 111.91 83.86939 69.24494 10.4842
2006-03 108.74 84.33369 69.33182 10.7493
2006-04 104.82 85.05124 69.43348 11.0489
2006-05 102.2 85.47333 69.12438 11.0908
2006-06 99.85 85.64217 69.18407 11.3934
2006-07 103.66 85.89542 69.37379 10.983
2006-08 104.87 86.06426 69.72781 10.8735
2006-09 105.46 85.64217 70.43171 10.9888
2006-10 107.41 85.17787 70.73963 10.8854
2006-11 107.51 85.05124 71.11079 10.9133
2006-12 108.11 85.17787 71.52214 10.8546
2007-01 108.23 85.43788 71.89153 10.9559
2007-02 107.56 85.895 72.09247 10.9951
2007-03 105.43 86.67713 72.2485 11.1144
2007-04 105.52 87.2402 72.20536 10.9802
2007-05 106 87.7733 71.85311 10.8221
2007-06 105.84 87.94341 71.9394 10.833
2007-07 106.12 87.92104 72.24496 10.8146
2007-08 104.26 87.7598 72.53928 11.0438
2007-09 104.37 88.00165 73.10252 11.0319
2007-10 105.78 88.18991 73.3874 10.8214
2007-11 104.7 88.71372 73.90513 10.8811
2007-12 105.92 88.65421 74.21068 10.8463
2008-01 105.2 89.09487 74.55466 10.9057
2008-02 106.44 89.35361 74.77629 10.7679
2008-03 105.63 90.12815 75.31825 10.7328
2008-04 107.49 90.67475 75.48965 10.5146
2008-05 107.73 91.43832 75.40809 10.4381
2008-06 108.62 92.35974 75.72015 10.3269
2008-07 109.66 92.84472 76.14213 10.2094
2008-08 113.31 92.47413 76.58185 10.1154
2008-09 109.45 92.34623 77.10372 10.6633
2008-10 95.22 91.41341 77.62914 12.6593
2008-11 95.34 89.66258 78.51153 13.1186
2008-12 93.39 88.73525 79.05527 13.4167
2009-01 90.62 89.12146 79.23848 13.8839
2009-02 86.92 89.56466 79.41342 14.6066
2009-03 86.88 89.78245 79.87028 14.6466
2009-04 94.07 90.00658 80.14983 13.4035
2009-05 94.29 90.26659 79.91638 13.1895
2009-06 92.37 91.04197 80.06354 13.3414
2009-07 92.45 90.89762 80.28163 13.3623
2009-08 94.48 91.10149 80.47371 13.0063
2009-09 91.5 91.15847 80.87738 13.406
2009-10 92.46 91.24626 81.12206 13.2275
2009-11 93.47 91.31084 81.54286 13.1115
2009-12 96.14 91.15003 81.88034 12.8622
2010-01 97.52 91.46153 82.77041 12.8096
2010-02 97.63 91.48432 83.24913 12.9396
2010-03 100.72 91.85998 83.84015 12.5673
2010-04 103.04 92.01953 83.57301 12.2396
2010-05 99.57 92.09087 83.04642 12.7262
2010-06 100.08 92.00096 83.02041 12.7102
2010-07 98.67 92.02038 83.20067 12.8038
2010-08 98.78 92.14743 83.43176 12.766
2010-09 98.42 92.20103 83.86911 12.7977
2010-10 100.49 92.31584 84.38685 12.4393
2010-11 102.41 92.35467 85.06297 12.3376
2010-12 102.67 92.51338 85.48437 12.3902
2011-01 104.7 92.95404 85.90082 12.128
2011-02 104.71 93.41243 86.22307 12.0649
2011-03 104.06 94.3233 86.38848 11.9963
2011-04 105.39 94.93069 86.38162 11.7059
2011-05 104.75 95.37726 85.74483 11.6542
2011-06 103.38 95.27512 85.74055 11.8055
2011-07 104.91 95.35954 86.15193 11.6741
2011-08 99.9 95.6225 86.28821 12.2366
2011-09 94.71 95.7677 86.4999 13.0637
2011-10 92.76 95.57016 87.08355 13.4379
2011-11 92.3 95.48954 88.02545 13.6955
2011-12 93.24 95.25401 88.74881 13.7746
2012-01 96.07 95.67315 89.37703 13.3829
2012-02 100.14 96.0944 89.55872 12.7833
2012-03 100.13 96.82419 89.61015 12.7523
2012-04 97.05 97.1167 89.32903 13.0559
2012-05 93.24 97.00274 89.04706 13.6199
2012-06 92.15 96.86049 89.45759 13.9193
2012-07 96.85 96.70263 89.95983 13.3638
2012-08 97.62 97.24079 90.2298 13.1793
2012-09 98.83 97.6747 90.62747 12.9235
2012-10 99.67 97.63672 91.08599 12.8976
2012-11 99.6 97.1741 91.70479 13.0639
2012-12 101.44 96.91241 91.91562 12.8651
2013-01 103.19 97.19901 92.28587 12.6964
2013-02 103.27 97.99507 92.74011 12.7249
2013-03 106.03 98.25128 93.42061 12.5
2013-04 109.1 98.14913 93.48232 12.2061
2013-05 107.86 98.32388 93.17121 12.2993
2013-06 102.03 98.55983 93.11464 12.9636
2013-07 103.8 98.59866 93.08379 12.7615
2013-08 102.26 98.71727 93.34862 12.912
2013-09 101.09 98.83208 93.70001 13.0553
2013-10 101.78 98.57755 94.14568 12.9916
2013-11 102.78 98.37622 95.0233 13.0597
2013-12 103.85 98.36778 95.56839 13.0099
2014-01 103.24 98.73373 96.42287 13.222
2014-02 102.52 99.09884 96.66713 13.2928
2014-03 102.78 99.73704 96.93196 13.1929
2014-04 103.08 100.0658 96.75112 13.0669
2014-05 103.42 100.4153 96.44173 12.933
2014-06 103.12 100.6023 96.60885 12.9932
2014-07 103.49 100.5631 96.87454 12.9914
2014-08 103.1 100.3951 97.2225 13.1436
2014-09 103.5 100.4706 97.65189 13.237
2014-10 102.95 100.2182 98.19183 13.4795
2014-11 103.95 99.6771 98.98375 13.6148
2014-12 99.07 99.11192 99.46884 14.5205
2015-01 98.99 98.64551 99.37885 14.6972
2015-02 97.8 99.07393 99.5674 14.917
2015-03 96.39 99.66359 99.97279 15.2375
2015-04 95.6 99.8662 99.71396 15.1943
2015-05 93.98 100.3752 99.21601 15.2796
2015-06 92.94 100.7268 99.38228 15.4792
2015-07 90.9 100.7336 99.52798 15.9515
2015-08 87.97 100.5909 99.73796 16.534
2015-09 86.81 100.4343 100.1116 16.8387
2015-10 88.38 100.3892 100.6267 16.5697
2015-11 89.48 100.1773 101.1761 16.6306
2015-12 87.91 99.83496 101.5883 17.0696
2016-01 83.64 100 101.9757 18.0648
2016-02 81.59 100.0823 102.4222 18.4332
2016-03 84.66 100.5133 102.5731 17.6303
2016-04 84.22 100.9898 102.2483 17.4795
2016-05 80.78 101.3984 101.7923 18.136
2016-06 78.28 101.7314 101.9046 18.6538
2016-07 79.16 101.5668 102.1703 18.6155
2016-08 79.34 101.6601 102.4582 18.4742
2016-09 76.75 101.9045 103.0839 19.2436
2016-10 78.63 102.0315 103.7095 18.8912
2016-11 75.18 101.8728 104.5203 20.0086
2016-12 74.46 101.9062 105.002 20.4992
2017-01 72.33 102.5 106.7872 21.3911
2017-02 76 102.8225 107.4043 20.3008
2017-03 80.26 102.9061 108.0634 19.28
2017-04 82.26 103.2113 108.1962 18.7672
2017-05 81.82 103.2995 108.0668 18.7666
2017-06 84.54 103.3932 108.3385 18.1293
2017-07 86.02 103.3219 108.7482 17.8081
2017-08 85.89 103.6312 109.2855 17.7969
2017-09 85.49 104.18 109.6275 17.8305
2017-10 81.95 104.1141 110.3174 18.8215
2017-11 82.22 104.1166 111.4547 18.9306
2017-12 81.71 104.0554 112.1138 19.1765
2018-01 82.13 104.6223 112.7095 18.9118
2018-02 83.13 105.0967 113.1389 18.6473
2018-03 83.26 105.3344 113.5048 18.5901
2018-04 83.91 105.7531 113.12 18.3876
2018-05 79.02 106.1929 112.9366 19.5525
2018-06 76.56 106.3622 113.3728 20.2878
2018-07 82.26 106.3693 113.9805 18.9856
2018-08 83.52 106.4284 114.6455 18.8633
2018-09 82.91 106.5521 115.1303 18.9991
2018-10 82.9 106.7404 115.727 19.1958
2018-11 79.56 106.3829 116.7115 20.2448
2018-12 80.89 106.0431 117.5295 20.0972
2019-01 84.66 106.2453 117.6299 19.1704
2019-02 84.35 106.6944 117.5968 19.1953
2019-03 84.16 107.2963 118.0498 19.2442
2019-04 84.96 107.8644 118.1125 18.9641
2019-05 84.1 108.094 117.7725 19.111
2019-06 83.19 108.1155 117.8478 19.2728
2019-07 84.55 108.2962 118.2905 19.0452
2019-08 81.98 108.2907 118.2711 19.6828
2019-09 82.65 108.3755 118.5814 19.547
2019-10 83.84 108.6233 119.2214 19.3193
2019-11 84.67 108.5651 120.1831 19.3261
2019-12 85.84 108.4663 120.8539 19.1024
2020-01 87.56 108.8871 121.4392 18.8066
2020-02 88.01 109.1855 121.9434 18.8423
2020-03 74.22 108.9479 121.8853 22.3785
2020-04 68.26 108.2194 120.6497 24.1798
2020-05 70.83 108.2215 121.1141 23.524
2020-06 74.11 108.8137 121.7769 22.3069
2020-07 73.64 109.3641 122.5766 22.3952
2020-08 74.07 109.7089 123.0592 22.2017
2020-09 75.99 109.8617 123.341 21.6613
2020-10 77.65 109.9073 124.0939 21.2804
2020-11 80.89 109.8402 124.1875 20.4566
2020-12 82.43 109.9436 124.6609 19.9604
2021-01 82.9 110.4113 125.7322 19.9412
2021-02 81.64 111.0157 126.5273 20.3296
2021-03 80.17 111.8021 127.5735 20.75
2021-04 82.84 112.721 127.991 20.0376
2021-05 82.38 113.6247 128.2523 19.9644
2021-06 82.26 114.6803 128.9357 20.0314
2021-07 83 115.232 129.6932 19.9664
2021-08 82.64 115.47 129.9407 20.075
2021-09 83.15 115.7837 130.7416 20.0461
2021-10 81.69 116.7456 131.8368 20.4399
2021-11 80.88 117.3192 133.3462 20.8698
2021-12 81.03 117.6797 133.8299 20.926
2022-01 82.47 118.6699 134.6216 20.5074
2022-02 118.6699 20.4578

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