With reference to the Indian Economy, consider the following statements:
- An increase in Nominal Effective Exchange Rate (NEER) indicates the appreciation of rupee
- An increase in Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness
- An increase in trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Reflection in IAS EXPRESS
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