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Demand and Supply of Foreign Exchange

The Indian go...

Question

The Indian government launched 'Incredible India' or 'Atulya Bharat' campaign to promote tourism in India. How will it affect the price of foreign exchange?

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Solution

The launch of 'Incredible India' campaign will lead to increase in supply of the foreign exchange in India (due to increase in foreign tourists). It will result in decrease in price of the foreign exchange.

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