What is the effect on the rpi increase in both er and mr
Problem
In country X an increase in the exchange rate (ER) of 1% or a decrease in the mortgage rate (MR) of 2% is reflected as a 10 point increase in the Retail Price Index (RPI). What is the effect on the RPI of a 1% increase in both ER and MR?
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In country X an increase in the exchange rate (ER) of 1% or a decrease in the mortgage rate. What is the effect on the RPI of a 1% increase in both ER and MR?
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