Which of the following statements are correct regarding Exchange Rate Determination in India ? 1. Real Effective Exchange Rate (REER) - Measure of the value of a country's currency against a basket of other currencies, taking into account exchange rates with its major trading partners. 2. Nominal Effective Exchange Rate (NEER) - Measure of the value of a country's currency against a basket of other currencies, adjusted for differences in price levels or inflation rates between the home country and its trading partners. Select the answer using the code given below.

Which of the following statements is/are correct? 1. GDP deflator captures the average price of an unchanging basket of commodities that constitutes the GDP of the country. 2. GDP deflator can be use…

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 Effe…

Which of the following statements is/are correct? 1. A price index captures the change in the average price of a constant basket of commodities. 2. If the price index takes values 100, 110, and 121 i…

Which of the following factors could potentially contribute to stagflation in the Indian economy? 1. High inflationary pressures due to increased Government spending 2. Decline in industrial producti…

In India, which one of the following is responsible for maintaining price stability by controlling inflation?