Prelims • Paper 1 (GS) • 2022 • Q.2
Economics (Macroeconomics - Exchange Rates)
With reference to the Indian economy, consider the following statements :
1
An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee.
2
An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.
3
An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.
Syllabus Connection
Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc. (Prelims)
NCERT Connection
Ch.4: Determination of Income and Employment
Economics • Class 12 • Class 12 Macroeconomics
Ch.6: Open Economy Macroeconomics
Economics • Class 12 • Class 12 Macroeconomics