Consider the following data for the U.S. and Switzerland:
GDP Deflator Switzerland GDP Deflator U.S. Market Exchange Rate
1980 85.7 76.0 2.49francs/$
1990 113.4 119.6 2.12 francs/$
Compute the real exchange rate for 1980 and 1990
(real exch.rate=(exch.Rate*U.S. price index)/foreign price index)© BrainMass Inc. brainmass.com October 9, 2019, 11:51 pm ad1c9bdddf
Compute the real exchange rate in this case.