Question

An increase in the value of the rupee makes foreign goods cheaper relative to india goods Resulting in in net export and a shift of the is curve.​

Answer 1

Explanation:

The exchange rate has an effect on the trade surplus or deficit, which in turn affects the exchange rate, and so on. In general, however, a weaker domestic currency stimulates exports and makes imports more expensive. Conversely, a strong domestic currency hampers exports and makes imports cheaper.