Assertion (A): A depreciation of the rupee makes Indian goods cheaper for foreign buyers.
Reason (R): After depreciation, each dollar buys more rupees' worth of Indian goods.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

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Correct answer: A

A ₹840 shirt costs $10.5 at ₹80 per dollar but $10 at ₹84 per dollar. R explains A.

Concept: Depreciation and exports
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe exchange rate

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Assertion (A): A depreciation of the rupee makes Indian goods cheaper for foreign buyers.Reason (R): After depreciation, each dollar buys more rupees' worth of Indian goods.

Explanation

Assertion (A): A depreciation of the rupee makes Indian goods cheaper for foreign buyers.
Reason (R): After depreciation, each dollar buys more rupees' worth of Indian goods.