Q150
Indian EconomyExternal Sector & International Organisations
When the Indian Rupee gets depreciated vis-à-vis the U.S. dollar, it usually makes
- a.Exports Cheaper and Imports Costlier
- b.Imports Cheaper and Exports Costlier
- c.both Exports and Imports Costlier
- d.no effect on Exports and Imports
Answer: (A) Exports Cheaper and Imports Costlier
A weaker rupee makes Indian goods cheaper for foreign buyers (boosting exports) while making imported goods costlier in rupee terms.