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प्रश्न
If you were to decide whether to buy domestic goods or foreign goods, which rate would be more relevant? Explain.
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उत्तर
If I were to decide whether to buy domestic goods or foreign goods, then real exchange rate would be more relevant, because real exchange rate takes the inflation differential among the countries into account and is also used as an indicator of a country’s competitiveness in the foreign trade.
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संबंधित प्रश्न
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