Question
Other things remaining unchanged, when in a country the price of foreign currency
rises, national income is (choose the correct alternative)
-
Likely to rise
-
Likely to fall
-
Likely to rise and fall both
-
Not affected
Solution
A.
Likely to rise
Reason:
Likely to rise: As export is one of the main component of National Income, which
increases as a result of rise in foreign currency price, there is likely an increase in the
National income.
