In January 2012, one US dollar was worth 50 Indian rupees. Suppose that over the next year, the value of th E decreases to 65 Indian rupees to one US dollar. Suppose also that the price level of all goods and services ir in rupees, falls 20%, so that the Indian price index falls from a value of 100 to 80. Finally, suppose that the
acmilla
increases by 6%, to 106.
By what percentage did the value of the real exchange rate change over this period? The exchange rate is ex number of Indian rupees per US dollar. Please give your answer to the nearest whole percentage point.
