Consider a case were the growth rate of the money supply in…

Consider a case were the growth rate of the money supply in the US is 6.3% per year and the growth rate of the money supply in the UK is 2.2% per year. Real GDP growth in the US is 3% per year while real GDP grows at a rate of 1.5% in the UK. In addition, the pound per dollar exchange rate is depreciating at a rate of 1.8% per year. You should assume that the inflation rate is determined by the quantity theory of the price level (and inflation) with constant velocity in each country. Calculate the annual percentage change of the real exchange rate (RER). Note: Include a (-) sign if the growth rate is negative. Round your answer to the nearest tenth of a percent.