Download App

Open Economy Macroeconomics — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsOpen Economy Macroeconomics3 Marks
Question
When exchange rate of foreign currency rises, its supply rises. How? Explain.
✓

Answer

When exchange rate rises, exports become cheaper, i.e. more exports per unit of foreign currency. This raises demand for exports. More exports mean more supply of foreign exchange.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Open Economy Macroeconomics→Open Economy Macroeconomics — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Giving reason state whether are included or excluded in/ from domestic territory.
Reliance Industries rented its building to Microsoft in America.
→
Give one point of difference between Microeconomics and Macroeconomics.
→
What is meant by consumption goods?
→
Explain the components of LRR.OR
Explain the distinction between SLR and CRR.
→
Explain the two components of government budget.
→
Give the meaning of involuntary unemployment.
→
Why developing countries like India prepare a deficit budget?
→
If Personal Disposable Income is ₹ 1,000 crore and consumption expenditure is ₹ 750 crore, find out Average Propensity to Save.
→
Giving reason, classify the into intermediate or final goods.
Coal used by consumer households.
→
Give the meaning of deflationary gap.
→