If the exchange rate between the United States and India changes from $1 = 60 rupees to $1 = 10 rupees, ceteris paribus
A) the United States imports from India increase.
B) Indian exports to the United States increase.
C) the United States exports to India increase.
D) the trade deficit in the United States increases.

Question

Quizplus · Accepted Answer

When the exchange rate changes from $1 = 60 rupees to $1 = 10 rupees, the dollar has depreciated relative to the rupee. This makes U.S. goods cheaper for Indian consumers, likely increasing U.S. exports to India.

If the Exchange Rate Between the United States and India