Economics · Oct / Nov 2024 · Paper 13 · Question 29
The diagram shows a change in the exchange rate for the Indian rupee against the US$. What could cause the change in the exchange rate?
- Aa decrease in the rate of inflation in India
- Ban increase in demand for imports by people in India
- Cgreater foreign direct investment into India
- Dgreater purchases of its own currency by the Indian central bank
As printed in the paper
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Correct answer: B. an increase in demand for imports by people in India
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