Sign up now
to enroll in courses, follow best educators, interact with the community and track your progress.
38 lessons,
5h 23m
Enroll
1.3k
Download
DETERMINATION OF EXCHANGE RATE CONTINUED..
660 plays

More
Fixed exchange rate system, dirty exchange rate system and other concepts.

Mohini Jain
Gold medalist in Economics and graduate from St. Francis. Loves to read novels.

Comments
(2)
Unacademy user
RER means wherein relative price of foreign goods is compared to domestic goods. I have an example: If the car price in india is 10lakhs and same car price in US is 15 lakhs after all conversions. so i will buy car in india only. so this means that RER increases with decreasing in imports. Please correct me if i am wrong on this concept
As per my understanding, I can say that RER is inversely proportional to Imports and directly proportional to Exports. Is it correct ?