Q13 and Q14 are linked.

Q 13: Today is November 16th 2023. You are Chief Economist at Goldman Sachs, a Wall Street investment bank.

On November 16th 2022 (EXACTLY ONE YEAR AGO), the (nominal) spot exchange rate for the number of INR (Indian Rupee) per USD was 88.064. Today, on November 16th 2023, the (nominal) spot exchange rate for the number of NZD per AUD is 95.460.

Between November 16th 2022 and November 16th 2023, the inflation rate in India was 11%, while over the same period, in the US, the inflation rate was 2.4%.

Assume that the real exchange rate on November 16th 2022 was normalised to be 88.064 (i.e., the same as the (nominal) exchange rate).

Q 13: Compute the real (REPEAT REAL) exchange for the number of INR per USD on November 16th 2023. Enter your answer to 4 decimal places. Don't worry if Canvas appears not to accept the answer to 4 decimal places (it does internally even if, for example, only one decimal place gets "displayed").

Q 14 (follows on from Q13):

Did relative PPP hold over the year from November 16th 2022 to November 16th 2023? Pick the best choice.

a. Yes, relative PPP did hold over the year from November 16th 2022 to November 16th 2023. b. No, relative PPP did not hold over the year from November 16th 2022 to November 16th 2023. c. Only Oliver the finance pug is clever enough to answer this question.