Finding Real Exchange Rate? need urgent please!!

Posted on 2017-10-31 18:22:00 in Economics by ABOT

1. In June 2015: 
• The currency in Australia is Australian Dollar. Australia had an inflation rate of 1.5 and an aggregate price of 1.2. 
• The currency in Singapore is Singapore Dollar. Singapore had an inflation rate of -0.7 and an aggregate price of 0.6. 
• The published exchange rate in Australia was 1.009 Singapore Dollar per Australian Dollar. 
Answer the following questions given the June 2015 short-run trend in the exchange rate for Singapore Dollar in Australia, ceteris paribus? Show your work. 
(a) (6 points) What is the real exchange rate for Singapore currency in Australia? 

(b) (6 points) What will be the nominal exchange rate one year after June 2015 ? 

(c) (6 points) What will be the published exchange rate one year after June 2015 ?

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