Advertisement Remove all ads

Explain the Effect of Appreciation of Domestic Currency on Imports. - Economics

Advertisement Remove all ads
Advertisement Remove all ads
Advertisement Remove all ads

Explain the effect of appreciation of domestic currency on imports.

Advertisement Remove all ads

Solution

The appreciation of domestic currency refers to an increase in the price of domestic currency related to foreign exchange. For example, $1 = Rs 50 to $1 = Rs 42 indicates that the goods from abroad will be cheaper, and hence, a rise in the demand for imports.

Concept: Concept of Foreign Exchange Rate
  Is there an error in this question or solution?

Video TutorialsVIEW ALL [1]

Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×