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"Us dollar has recorded a jump …

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"Us dollar has recorded a jump of 0.75 paise per dollar in the last last month, this situation might brings smiles and sorrow to different types of traders' .justify the given dtatement

Posted by Anjali Kumari 4 years, 1 month ago

CBSE > Class 12 > Economics

2 answers

Gaurav Seth 3 years, 4 months ago

A jump in the US dollar might bring smiles and sorrow to different people such that a jump in US dollar reflects the appreciation in US dollars and depreciation in the domestic currency. So, this will be good news for the exporters of the domestic country since now the domestic products will become cheaper in the market and they will be able to sell more. On the other hand, it will bring sorrow to the importers as now the imports will decline. This is because with an appreciation of US dollars, the foreign goods will become more expensive. So, all in all the exports will increase and the imports will decline.

Neelam Agrawal 4 years, 1 month ago

Sorrow as domestic goods become cheaper in terms of American goods and with same amount of foreign currency more goods can be purchased from indian

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