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Economics
MEDIUM
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Economics
Which of the following statements regarding the market for foreign currency exchange is true ?
An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees depreciate
Correct answer
B
An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees appreciate
Option B
C
An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees depreciate
Option C
D
An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees appreciate
Option D
Correct answer: A
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