Other things remaining unchanged when in a country the price of foreign currency rises national inco...........

Other things remaining unchanged, when in a country the price of foreign currency rises, national income is:

Likely to rise

Likely to fall

Likely to rise and fall both

Not affected

- Option 1: Likely to rise

- A rise in foreign currency prices can boost exports as local goods become cheaper for foreign buyers.

- This increase in exports can lead to higher national income.

- Option 2: Likely to fall

- Higher foreign currency prices can increase import costs, reducing purchasing power and potentially lowering national income.

- Option 3: Likely to rise and fall both

- The economy might experience both effects, with some sectors benefiting while others suffer, leading to mixed impacts on national income.

- Option 4: Not affected

- This is unlikely since changes in currency prices typically influence trade balances and income levels.

?? Option 1: Likely to rise is correct.

Submit Error