Other things remaining the same when in a country the market price of foreign currency falls nationa...........

Other things remaining the same, when in a country the market price of foreign currency falls, national income is likely:

To rise

To fall

To rise or to fall

To remain affected

- When the market price of foreign currency falls, it means the domestic currency has appreciated.

- This makes exports more expensive and imports cheaper.

- As a result, exports usually decrease, and imports increase, reducing the country’s net exports.

- Lower net exports can lower national income, as less money flows into the domestic economy.

- Option 1: National income rarely rises in this case because exports suffer.

- Option 2: National income is likely to fall.

- Option 3: It could theoretically fall or rise, but most often, it falls.

- Option 4: National income is affected, not unaffected.

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