If the income of the country and income abroad increase simultaneously, then the domestic currency will............. Option 1: Depciates. Option 2: Appreciates. Option 3: May or may not depreciate. Option 4: Initially appreciates and then depreciate.

The answer is 'May or may not depreciate.'. View full solution:

CUET Economics - If the income of the country and income abroad increase simultaneously, then the domestic currency will............. | PYQs + Solutions

CUET Economics 2025 26 May Shift 2

Macro

Medium

Depciates.

Appreciates.

May or may not depreciate.

Initially appreciates and then depreciate.

✅ Correct Option: 3

Related questions:

28 May Shift 1

When income increases, consumer spending increases. Spending on imported goods is also likely to __________.

CUET Economics 2022 Slot 5

Match List - I with List - II.

List - I (Concept)	List - II (Meaning)
(A) Trade surplus	(I) Excess of the payments for import of goods over the receipts for export of goods
(B) Devaluation of currency	(II) Excess of exports of goods over the imports of goods
(C) Trade deficit	(III) Fall in the external value of a domestic currency as notified by the government of the country
(D) Balance of trade	(IV) Difference between the value of exports and value of imports of goods of a country

Choose the correct answer from the options given below :

28 May Shift 2

The issue of currency's credibility and ensuring stability in international transactions, is handled by ............