Home / Questions / During 1995 the Mexican peso exchange rate rose from Mex$533/US$ to Mex $764/US$. At the s...
During 1995, the Mexican peso exchange rate rose from Mex$5.33/US$ to Mex $7.64/US$. At the same time, U.S. inflation was approximately 3% in contrast to Mexican inflation of about 48.7%. a. By how much did the nominal value of the peso change during 1995? b. By how much did the real value of the peso change over this period?
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