Year	£/$ Exchange rate	£/$ index	UK Price Index	US Price Index	Real £/$ Index
5	£1.20/$1	x	135	145	x
4	£0.95/$1	x	130	140	x
3	£1/$1	x	115	120	x
2	£0.90/$1	x	105	110	x
1	£1.10/$1	x	100	100	x

Find the nominal (£/$ index) and real exchange rate indices (Real £/$ Index) for $. Year 1 is the base year.

Answer rating: 100% (QA)

SOLUTION formula A B Exchange rate 5 1201 4 0951 1 Year 2 3 4 5 6 7 8 Nom... View the full answer