Question
Giving two examples, explain why there is a rise in demand for a foreign currency when its price falls.
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
|
S.No.
|
Contents
|
₹ (in crore)
|
| $(i)$ |
Private Final Consumption Expenditure
|
$1,000$ |
| $(ii)$ |
Net Factor Income to Abroad
|
$(-)20$ |
| $(iii)$ |
Net Domestic Capital Formation
|
$300$ |
| $(iv)$ |
Government Final Consumption Expenditure
|
$200$ |
| $(v)$ |
Net Current Transfers to Rest of the World
|
$10$ |
| $(vi)$ |
Gross Domestic Capital Formation
|
$350$ |
| $(vii)$ |
Net Indirect Tax
|
$80$ |
| $(viii)$ |
Net Imports
|
$40$ |
| S. No. | Items | ₹(in crore) |
| (i) | Revenue receipts | 50,000 |
| (ii) | Revenue expenditure | 60,000 |
|
Level of Income (₹)
|
400
|
500
|
600
|
700
|
|
Consumption Expenditure (₹)
|
240
|
320
|
395
|
465
|
|
MPC
|
-
|
-
|
-
|
-
|
|
MPS
|
-
|
-
|
-
|
-
|
|
S.No.
|
Contents
|
₹ (in crore)
|
| $(i)$ |
Net Current Transfers from Rest of the World
|
$(-)60$ |
| $(ii)$ |
Net Factor Income from Abroad
|
$(-)40$ |
| $(iii)$ |
Government Final Consumption Expenditure
|
$2,000$ |
| $(iv)$ |
Private Final Consumption Expenditure
|
$6,000$ |
| $(v)$ |
Net Domestic Fixed Capital Formation
|
$800$ |
| $(vi)$ |
Gross Domestic Capital Formation
|
$950$ |
| $(vii)$ |
Change in Stock
|
$50$ |
| $(viii)$ |
Net Exports
|
$(-)50$ |
| $(ix)$ |
Profits
|
$1,000$ |
| $(x)$ |
Net Indirect Tax
|
$700$ |
| Income | Saving | Marginal Propensity to Consume |
Averge Propensity to Save |
| 0 | - 12 | - | - |
| 20 | - 6 | - | - |
| 40 | 0 | - | - |
| 60 | 6 | - | - |