Question

Impact of macroeconomic variables on values of currencies

Answer 1

Money supply: It is an important variable to stabilize the economy because it can be used for immediate transactions. ... Therefore, for oil importing countries like India, an increase in oil prices will lead to an increase in production costs, decrease future cash inflows and put a negative impact on the stock market.

Answer 2

: It is an important variable to stabilize the economy because it can be used for immediate transactions. ... Therefore, for oil importing countries like India, an increase in oil prices will lead to an increase in production costs, decrease future cash inflows and put a negative impact on the stock market.