If the government of India made policy changes that increased national saving,which statement would best predict the consequences?
A) The real exchange rate of the rupee would depreciate,and Indian net exports would rise.
B) The real exchange rate of the rupee would depreciate,and Indian net exports would fall.
C) The real exchange rate of the rupee would appreciate,and Indian net exports would rise.
D) The real exchange rate of the rupee would appreciate,and Indian net exports would fall.

Question

Quizplus · Accepted Answer

Increased national saving leads to a lower interest rate, causing the rupee to depreciate, making exports cheaper and increasing net exports.

If the Government of India Made Policy Changes That Increased