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