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HOTS Foreign Exchange Rate and Balance of Payments | Competency Based Questions in Economics | HOTS 

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HIDDEN GEMS from Foreign Exchange Rate and Balance of Payments
• HIDDEN GEMS | IMPORTAN...
Foreign Exchange Rate
Balance of Payments
Class 12th Macroeconomics
Economics
A rise in the interest rates at home often leads to an appreciation of the domestic currency. How?
Speculation
Managed floating exchange rate system
Other things remaining equal, a country whose aggregate demand grows faster than the rest
of the world’s normally finds its currency depreciating because its imports grow
faster than its exports.
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