The Real Exchange Rate between Germany and the United States. Consider the following data for the United States and Germany during the period that Germany had its own currency, the mark: a. By what...

The Real Exchange Rate between Germany and the United States. Consider the following data for the United States and Germany during the period that Germany had its own currency, the mark:

a. By what percent did the dollar depreciate against the mark over this period?

b. Using the formula for the real exchange rate

real exchange rate =
(exchange rate * U.S. price index)

                                                     foreign price index

compute the real exchange rate for 1980 and for 1990.

c. By how much did the real exchange rate change over this period?

d. Compare your answer for part (c) to your answer to part (a).