Economics · Exchange Rates & Trade
A depreciation of the domestic currency may improve export competitiveness under certain conditions because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1tax collection rises proportionately
- 2fiscal deficit narrows by definition
- 3domestic goods become relatively cheaper for foreign buyers in foreign currency terms✓
- 4imports become cheaper for residents in all cases
Correct answer
domestic goods become relatively cheaper for foreign buyers in foreign currency terms
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Exchange Rates & Trade MCQs →Want more practice questions on Exchange Rates & Trade?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Exchange Rates & Trade