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How Can Increase in Foreign Direct Investment Affect the Price of Foreign Exchange? - CBSE (Arts) Class 12 - Economics

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Question

How can increase in foreign direct investment affect the price of foreign exchange?

Solution

When there is an increase in foreign direct investment, the supply of foreign currency increases, and thus, the price of foreign exchange falls.

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Solution How Can Increase in Foreign Direct Investment Affect the Price of Foreign Exchange? Concept: Concept of Foreign Exchange Rate.
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