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5) If the nominal exchange rate E=0.50/$ does this mean goods are more or less expensive in the Euro zone? Do you need more information needed? If so, what additional information do you need to know? 6) In the summer of 2009 , I bought the book Nudge (which I recommend) for US $16 at Borders. The back of the book says the Canadian dollar price was CAN\$ 20. The average exchange rate over July and August 2009 was about CAN\$1.10/US\$. a) How many CAN\$ would you needed to buy Nudge in US? b) Calculate the real exchange rate in terms of the book Nudge. Where was the book cheaper? If you could, where would you buy the book and where would you sell it? How much profit would you make with each buy then sell transaction? 5) If the nominal exchange rate E=0.50/$ does this mean goods are more or less expensive in the Euro zone? Do you need more information needed? If so, what additional information do you need to know? 6) In the summer of 2009 , I bought the book Nudge (which I recommend) for US $16 at Borders. The back of the book says the Canadian dollar price was CAN\$ 20. The average exchange rate over July and August 2009 was about CAN\$1.10/US\$. a) How many CAN\$ would you needed to buy Nudge in US? b) Calculate the real exchange rate in terms of the book Nudge. Where was the book cheaper? If you could, where would you buy the book and where would you sell it? How much profit would you make with each buy then sell transaction

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