Scenario: Exchange Rate Between the United States and India Suppose

Scenario: Exchange Rate between the United States and India Suppose that initially the nominal exchange rate was 40 rupees per dollar but it is now 50 rupees per dollar. The real exchange rate will change by the greatest amount when the U.S. inflation rate is _____ and the Indian inflation rate is _____.

A) zero; zero
B) 5%; 2%
C) 2%; 12%
D) 5%; 5%