Question

What is likely the impact on gdp of change in market foreign exchange rate? Explain with the help of an example class 12 eco

Answer 1

Explanation:

Read about the impact of the balance of trade on a ... sell to foreign consumers – a trade deficit

Answer 2

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GDP is the annual value of gross domestic product by country (in local currency) and ER is the annual value of exchange rate (end of period) by country. Theoretically, the variable of ER is expected to have a positive relationship with the GDP variable.