Sign up now
to enroll in courses, follow best educators, interact with the community and track your progress.
DETERMINATION OF EXCHANGE RATE CONTINUED..
a year ago
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