M&B3 3rd Edition by Dean Croushore

Exercise 2

Suppose the price level in Japan is 12,000, the price level in the United States is 145, and the price level in Mexico is 500. Suppose the current nominal exchange rates are 115 yen per dollar and 4 pesos per dollar. Calculate the real exchange rates (rounded to two decimal places) between each pair of countries. (That means you should be calculating three real exchange rates.)