Explain aggregate price level has remained unchanged in us


Consider the information provided. If the nominal exchange rate is 50 rupees per dollar and the inflation rate in India is 25%, while the aggregate price level has remained unchanged in the U.S., then:

A. the real exchange rate between the U.S. dollar and the Indian rupee remains unchanged at 40.
B. the real exchange rate between the U.S. dollar and the Indian rupee remains unchanged at 50.
C. the real exchange rate between the U.S. dollar and the Indian rupee increases from 40 to 50.
D. the real exchange rate between the U.S. dollar and the Indian rupee increases by more than 25%.

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Microeconomics: Explain aggregate price level has remained unchanged in us
Reference No:- TGS065750

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