Practice mode Macroeconomic Issues and Analysis

If Pakistan earns more export revenue than expected, what will tend to happen to the exchange value of its currency?

Correct answer D. Appreciate

Explanation

Foreign buyers must pay for Pakistani exports, and exporters convert earnings into rupees. Higher export revenue therefore raises demand for the rupee and lifts its value.

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If Pakistan earns more export revenue than expected, what will tend to happen to the exchange value of its currency?

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If Pakistan earns more export revenue than expected, what will tend to happen to the exchange value of its currency?

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