Define nominal exchange rate and real exchange rate, Microeconomics

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Define nominal exchange rate and real exchange rate

Assignment:

1. Define nominal exchange rate and real exchange rate, and explain how they are related. If the nominal exchange rate goes from 100 to 120 yen per dollar, has the dollar appreciated or depreciated?

2. Describe the sources of supply and demand in the market for loanable funds and the market for foreign currency exchange.

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Microeconomics: Define nominal exchange rate and real exchange rate

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Microeconomics: Define nominal exchange rate and real exchange rate

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