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In March 2019 the exchange rate for the Indonesian rupiah was R 13,901 = $1. Inflation in the year to March 2020 was about 2.07%

In March 2019 the exchange rate for the Indonesian rupiah was R 13,901 = $1. Inflation in the year to March 2020 was about 2.07% in Indonesia and 0.62% in the United States.

a. If purchasing power parity held, what should have been the nominal exchange rate in March 2020?

b. The actual exchange rate in March 2020 was R 16,280 = $1. What was the change in the real exchange rate?

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