Question

Demand for American goods will rise in India due to appreciation of Indian currency.

• A. True
• B. False

Answer 1

The correct option is A True

Demand for American goods will rise in India due to appreciation of Indian currency. Appreciation of domestic currency is a situation of a fall in exchange rate, i.e, less rupees are needed to buy one dollar. Thus, making American goods cheaper and leading to an increase in their demand.