Why does a rise in foreign exchange rate cause a rise in its supply?
Answers
Answered by
2
Answer:
As a result, imports decline. Thus, the demand for foreign exchange also decreases. The supply curve [S$] is upward sloping which means that supply of foreign exchange increases as the exchange rate increases. This makes home country's goods become cheaper to foreigners since rupee is depreciating in value.
Explanation:
Similar questions