Question

Orher things remaining the same when foreign currency becomes cheaper,
the effect on national income longer to be
(1)
Positive
Negative
Poate and negative both
Na effect​

Answer 1

Answer:

When foreign currency becomes cheaper, it indicates that demand of foreign exchange is higher than the supply of foreign exchange. Hence, other things remaining the same, when foreign currency becomes cheaper, the effect on national income is likely to be negative.