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Suppose the exchange rate was Math input error1 = ₹ 92. What will be its effect on the following? Import of wheat by India from the USA - Economics

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प्रश्न

Suppose the exchange rate was $1 = ₹ 80 and later changed to $1 = ₹ 92. What will be its effect on the following?

Import of wheat by India from the USA

टिप्पणी लिखिए

उत्तर

The depreciation of the domestic currency (from ₹ 80 to ₹ 92 per dollar) increases the cost of imports from the USA for Indian buyers in terms of Indian rupees. As a result, India's wheat imports from the USA may decline.

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