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Explain the impact of rise in …

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Explain the impact of rise in foreign exchange rate on national income

    • Posted by Swati Jain 6 years, 7 months ago

    CBSE > Class 12 > Economics
    • 5 answers

    Indrajeet Singh Arora 6 years, 7 months ago

    Due to this, the foriegn country can purchase more of goods by paying the same amount of foreign currency from the domestic country . As a result export will rise and imports will fall. A rise in exports raise AD .Hence, domestic currency depreciates and this inturn increase the national income

    0Thank You

    Aman Nagar 6 years, 7 months ago

    Rise in foreign exchange rate will leads to increase in net export and net export is a component of national income . Thus , national income will increase.

    1Thank You

    Aman Nagar 6 years, 7 months ago

    You are wrong Nandani

    1Thank You

    Nandani Maloo 6 years, 7 months ago

    Sorrry, forex rate increase would make exports costlier and NY will falll , m really sorry for d mistake

    0Thank You

    Nandani Maloo 6 years, 7 months ago

    Increase in foreign exchange will make imports expensive due to which imports would , this would result in rise in national income

    1Thank You

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