If the Government of India Made Policy Changes That Increased

question 41

Multiple Choice

If the government of India made policy changes that increased national saving,which statement would best predict the consequences?

• A) The real exchange rate of the rupee would depreciate,and Indian net exports would rise.
• B) The real exchange rate of the rupee would depreciate,and Indian net exports would fall.
• C) The real exchange rate of the rupee would appreciate,and Indian net exports would rise.
• D) The real exchange rate of the rupee would appreciate,and Indian net exports would fall.

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Definitions:

Derived Demand

The demand for a resource that results from the demand for the goods and services that the resource produces.

Long Delivery Times

Long Delivery Times refer to the extended period it takes for a customer to receive a product or service after placing an order, often due to manufacturing or logistical complexities.

Credit Period

The amount of time allowed by a seller to a buyer to pay for the goods or services purchased on credit, usually described in days.

Highly Perishable

Describes goods or products that have a short shelf life and require immediate consumption, sale, or processing to avoid spoilage or loss of value.