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real exchange rates

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GDP Deflator Switzerland GDP Deflator United States Market Exchange Rate

1980 85.7 76.0 2.49 francs/$

1990 113.4 119.6 2.12 francs/$

a- Compute the real exchange rate for 1980
b- Compute the real exchange rate for 1990

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Solution Summary

The expert computes the real exchange rates in the case.