one of the first visible effects of currency depreciation is the country imports because of 1 more e...........

Economic Affairs NCERT

one of the first visible effects of currency depreciation is the country imports because of :

1. more expensive and exports cheaper.

2. it takes more rupees to pay for the same quantum of imports and few dollars for a buyer to pay for the same quantity of exports.

3.more expensive imports are likely to drive inflation upward, especially in india.

4. a depreciating rupee also impacts the oil import bill.

1 and 2

2,3,4

3 and 4

all of the above

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Explanation:

one of the first visible effects of currency depreciation is the country imports because of more expensive and exports cheaper. it takes more rupees to pay for the same quantum of imports and few dollars for a buyer to pay for the same quantity of exports and more expensive imports are likely to drive inflation upward, especially in india and a depreciating rupee also impacts the oil import bill since it costs more rupees per barrel of oil , which plays its own part in pushing inflation up.