Question: Which feature of the economy could explain why the purchasing power parity exchange rate of the Rupee in much higher then its market exchange rate?
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a.high levels of rural unemployment
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b.high levels of duty on imported goods
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c.the relatively low rate of inflation
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d.the relatively low price of goods not trated internationally
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e.None of the above
Answer: c
 high levels of rural unemployment b) high levels of duty on imported goods c) the relatively low rate of inflation d) the relatively low price of goods not trated internationally e) None of the above Ans. c) the relatively low rate of inflation
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