Giving reasons, state whether the following statements are true or false:
Depreciation of domestic currency encourages exports.
Depreciation of domestic currency encourages exports.
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True.
Explanation:
Depreciation of domestic currency encourages exports, because our Indian goods become cheaper for the rest of the world, which now buys more of Indian goods, i.e., Exports.
Explanation:
Depreciation of domestic currency encourages exports, because our Indian goods become cheaper for the rest of the world, which now buys more of Indian goods, i.e., Exports.
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