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  2. If the price level in the U.S. is 128the price level in Mexico is 124, and the real exchange rate is 20.02 pesos (Mexico’s currency) per dollar, what is the nominal exchange rate from the U.S. perspective?

If the price level in the U.S. is 128the price level in Mexico is 124, and the real exchange rate is 20.02 pesos (Mexico’s currency) per dollar, what is the nominal exchange rate from the U.S. perspective?

ASSIGNMENT

If the price level in the U.S. is 128the price level in Mexico is 124, and the real exchange rate is 20.02 pesos (Mexico’s currency) per dollar, what is the nominal exchange rate from the U.S. perspective? Round to two decimal places and do not include the “pesos per dollar.

For example, if your answer was 5.675 pesos per dollar, you would only enter 5.68.


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