Q 5 and Q 6 combined:
Q 5: Today is May 24th 2024.
You are Chief Economist at Koala Bear Economics Inc, an economic research consulting company in Sydney, Australia, with great views over Sydney harbour. Wow! I am jealous! Send me photos!
On May 24th 2019 (EXACTLY FIVE YEARS AGO), the (nominal) spot exchange rate for the number of AUD (Australian dollars) per GBP (British pound) was 1.6800.
Today, on May 24th 2024, the (nominal) spot exchange rate for the number of AUD per GBP is 1.6960.
On May 24th 2019, the Consumer Price Index in the U.K. was 125.00 while on May 24th 2024 (today), it is 131.25.
On May 24th 2019, the Consumer Price Index in Australia was 150.00 while on May 24th 2024 (today), it is 159.00.
Assume that the real exchange rate on May 24th 2019 was normalized to be 1.6800 (i.e., the same as the (nominal) spot exchange rate).
Q 5: Compute the real (REPEAT REAL) exchange for the number of AUD per GBP on May 24th 2024. Enter your answer to 4 decimal places (don't worry if Canvas seems not to retain trailing zeros).