Suppose the real exchange rate is 10, the domestic price level is 8, and the foreign price level is 4. (i) What is the nominal exchange rate?Use the expression: ,where ereal is real exchange rate, enor is nominalexchange rate, P is domestic price level and Pfor, is foreign price level  (ii) Suppose the real exchange rate rises by 10%, the inflation rate in the domestic country is 6%, and the inflation rate in the foreign country is 4%. By what percentage does the nominal exchange rate change?

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