Use the information in the chart below to calculate the real exchange rate betwe

Question

Use the information in the chart below to calculate the real exchange rate between the U.S. dollar and the Indian rupee. Round to the nearest whole number.

Sapling Learning Mapa macmillan learning Use the information in the chart below to calculate the real exchange rate between the U.S. dollar and the Indian rupee. Round to the nearest whole number. 2014 In 2014, the real exchange rates was 57 2015 63 100.2 118 rupees/dollar US price index Indian price index 2016 68 101.2 Number 99.5 108 129 rupees / dollar In 2015, the real exchange rate was In 2016, the real exchange rate was Number Number rupees / dollar rupees / dollar

Explanation / Answer

real exchange rate formula = nominal exchange rate * ( domestic price / foreign price)

so, real exchange rate in 2014 = 57 * 99.5 / 108 = 52

real exchnage rate in 2015 = 63 * 100.2/ 118 = 53

real exchange rate in 2016 = 68* 101.2/129 = 53

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.