In March 1997 the exchange rate for the Indonesian rupiah was R 2,419 = $1. Inflation in

Question:

In March 1997 the for the Indonesian rupiah was R 2,419 = $1. Inflation in the year to March 1998 was about 30% in Indonesia and 2% in the United States.
a. If purchasing power parity held, what should have been the nominal in
March 1998?
b. The actual in March 1998 (in the middle of the Asian currency crisis) was R 8,325 = $1. What was the change in the real Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...