Answered You can hire a professional tutor to get the answer.
QUESTION
Suppose the nominal U.-Canada exchange rate is $1.3 per Canadian Dollar, the U. has a 5% inflation, and Canada has 0% inflation. Under these...
Suppose the nominal U.S.-Canada exchange rate is $1.3 per Canadian Dollar, the U.S. has a 5% inflation, and Canada has 0% inflation. Under these conditions the real U.S.-Canada exchange rate, rounded to the nearest cent, is approximately
E1/Eo = ( 1+I1)/(1+Io)1.3/ Eo = ( 1+0)/(1+.05) = 1/1.05Eo = 1.365 $/Canadian dollar