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CBSE Class 12-commerce Answered

Does a rise in exchange rate boost exports in an economy?
Asked by Topperlearning User | 19 Apr, 2016, 12:42: PM
answered-by-expert Expert Answer

A rise in exchange rate will not always lead to a rise in our export earnings. It works only when elasticity of demand for exports is greater than unity as the total expenditure on exports will increase in response to a change in exchange rate. It causes a fall in price of domestic goods in relation to foreign currency.

Answered by | 19 Apr, 2016, 02:42: PM
CBSE 12-commerce - Macroeconomics
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ANSWERED BY EXPERT ANSWERED BY EXPERT
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ANSWERED BY EXPERT ANSWERED BY EXPERT
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Asked by Topperlearning User | 19 Apr, 2016, 12:42: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
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Asked by Topperlearning User | 19 Apr, 2016, 12:42: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Macroeconomics
Asked by Topperlearning User | 19 Apr, 2016, 12:42: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 12-commerce - Macroeconomics
Asked by Topperlearning User | 19 Apr, 2016, 12:42: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT
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