1. US-India real exchange rate change in 2020: In December 2019, the consumer price index (CPI) for the US economy was 258.4. During the same month, the CPI for the Indian economy, adjusted to reflect the same base year and the same basket of consumer goods as in the US, was 9990.2. In December 2020, these indices had reached 268 and 10324.9, respectively. The average exchange rate e between the currencies of the two economies was 72 rupees/$ in December 2019 and 73.6 rupees/$ in December 2020. For the purposes of this question, treat the US dollar as the home currency.

Did the US dollar depreciate or appreciate in nominal terms against the Indian rupee from December 2019 to December 2020? By how much?

Did the US dollar depreciate or appreciate in real terms against the Indian rupee from December 2019 to December 2020? By how much?