Consider the following data on usdmxn and price levels in, Financial Management

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Consider the following data on usdmxn and price levels in

Consider the following data on USDMXN and price levels in the United States and Mexico. Calculate the real exchange rate at t=0.

Price Level (P)

Year USDMXN Mexico United States Real Exchange (q)

-3 13.00 100 100 ?

-2 13.50 105 102 ?

-1 14.00 111 104 ?

0 14.50 116 107 ?

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