Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Which characteristic of the Indian economy might account for the purchasing power parity exchange rate of the Rupee being much higher than its market exchange rate?

  • Ahigh levels of duty on imported goods
  • Bhigh levels of rural unemployment
  • Cthe relatively low price of goods not traded internationally
  • Dthe relatively low rate of inflation

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