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                                    Suppose ittakes 1.25 yen to buy a rupee, and the price level in Japan is 3 andthe price level in India is 1.2. Calculate the real exchange ratebetween India and Japan (the price of Japanese goods in terms ofIndian goods). (Hint: First find out the nominal exchange rateas a price of yen in rupees). | 
                            
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Answer»  Suppose it  | 
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