Re: jnu 2017 answers sss, let's discuss
Posted by soimmoi on Dec 19, 2017; 6:48pm
URL: http://discussion-forum.276.s1.nabble.com/jnu-2017-answers-sss-let-s-discuss-tp7608176p7608589.html
Hey! I tried that bottle question again
see it's profitable to visit a foreign country when nominal and real exchange rate both are high.
here nominal exchange rate has increased from rs20=$1 to rs 45=$1 so which says it's profitable visit india in 2000
coming to real exchange rate since inflation rates are given we can calculate the price for 1991 which are coming out to be 2 in India and 1.5 in US so, real ER1991= 0.06 REAL ER 2000= 0.33 So, REAL ER HAS ALSO INCREASED. HENCE IT'S PROFITABLE TO VISIT INDIA IN 2000. Please share your views