UPSC Exam  >  UPSC Questions  >   Consider the following statements. 1. When i... Start Learning for Free
Consider the following statements.
1. When imports increase, the demand curve for foreign exchange shifts to the right
2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outward
Which of these statements are not correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    Both 1 and 2
  • d)
    None of them
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements. 1. When imports increase, the dema...
  • When income increases, consumer spending increases. Spending on imports is also likely to increase.
  • When imports increase, the demand curve for foreign exchange shifts to the right. There is a depreciation of the domestic currency. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outward.
  • On balance, then domestic currency may or may not depreciate. What happens will depend on whether exports are growing faster than imports. In general, other things remaining equal, a country whose aggregate demand grows faster than the rest of the world normally finds its currency depreciating because its imports grow faster than its exports. Its demand curve for foreign currency shifts faster than its supply curve.
Explore Courses for UPSC exam
Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer?
Question Description
Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Consider the following statements. 1. When imports increase, the demand curve for foreign exchange shifts to the right2. If there is an increase in income abroad as well, domestic exports will rise and the supply curve of foreign exchange shifts outwardWhich of these statements are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam
Signup to solve all Doubts
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev