1. The nominal exchange rate for 1$USD is 6.87CNY, a cheeseburger in the US is $1.60USD, and 11CNY in China. Please calculate the real exchange rate, and provide the formula, including the numbers above.

1. The nominal exchange rate for 1$USD is 6.87CNY, a cheeseburger in the US is $1.60USD, and 11CNY in China. Please calculate the real exchange rate, and provide the formula, including the numbers above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. The nominal exchange rate for 1$USD
is 6.87CNY, a cheeseburger in the US is
$1.60USD, and 11CNY in China. Please
calculate the real exchange rate, and
provide the formula, including the
numbers above.

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