Asked by
SANDESH MANTRI
on Dec 08, 2024Verified
If the exchange rate between the United States and India changes from $1 = 60 rupees to $1 = 10 rupees, ceteris paribus
A) the United States imports from India increase.
B) Indian exports to the United States increase.
C) the United States exports to India increase.
D) the trade deficit in the United States increases.
Exchange Rate
The value of one currency expressed in terms of another currency, used when converting from one currency to another.
Rupees
The official currency of India, also used as currency in other countries such as Pakistan, Nepal, and Sri Lanka.
United States Imports
Goods and services brought into the United States from other countries for sale or use.
- Assess the effects of variations in exchange rates on trade equilibrium.
Verified Answer
KL
Learning Objectives
- Assess the effects of variations in exchange rates on trade equilibrium.