Question: There are two countries, X and Y, whose currencies are $X and $Y. In early 2017, the nominal exchange rate between them was 3 $X/$Y.

There are two countries, X and Y, whose currencies are $X and $Y. In early 2017, the nominal exchange rate between them was 3 $X/$Y. The following inflation rates are given for 2017 and 2018.

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