Practicing Success
Which of the following statements is true. If exchange rate changes from $1 = ₹72 to ₹81. A. Import will fall Choose the correct answer from the options given below: |
B, C and D only A, C and D only B, C and E only A, C and E only |
A, C and D only |
The correct answer is A, C and D only. When the exchange rate changes from $1 = ₹72 to ₹81, this means that the Indian rupee has depreciated against the US dollar. This means that it takes more rupees to buy one dollar. As a result, imports will become more expensive, and exports will become cheaper. Explanation:
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