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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.