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.

Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter31: Open-Economy Macroeconomics: Basic Concepts
Section31.2: The Price For International transaction: Real And Nominal Exchange Rate
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1. The nominal exchange rate for 1$USD
is 6.87CNY, a cheeseburger in the US is
$1.60USD, and 11CNY in China. Please
calculate the real exchange rate, and
provide the formula, including the
numbers above.
Transcribed Image Text:1. The nominal exchange rate for 1$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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