Question: West Bubble makes ordinary soap bars that are sold for 5 guilders each. East Bubble makes deluxe soap bars that are sold for 100 florins

West Bubble makes ordinary soap bars that are sold for 5 guilders each. East Bubble makes deluxe soap bars that are sold for 100 florins each. The real between West and East Bubble is two ordinary soap bars per deluxe soap bar.
a. What is the nominal between the two countries?
b. During the following year, West Bubble has 10% domestic inflation and East Bubble has 20% domestic inflation. Two ordinary soap bars are still traded for a deluxe soap bar. At the end of the year, what has happened to the nominal Which country has had a nominal appreciation? Which alias had a nominal depreciation?

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