A rise in interest rates, followed by a rise in the exchange rate, will result in all of the following effects, except

Question

(a) The price of imported raw materials will rise.(b) The price of imported raw materials will fall.(c) The price of exported goods will rise..(d) Domestic producers will find it harder to compete against imported goods.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN · Answer

ANSWER OPTION >>>>>>>>>> (a) The price of imported raw materials will rise.

Money value of the Domestic currency will fall and more domestic money required to settle imports.

Kishor Vadher · Answer

A is the right answer i.e. The price of imported raw materials will rise

Vinod Jetley · Answer

.(b) The price of imported raw materials will fall

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A rise in interest rates, followed by a rise in the exchange rate, will result in all of the following effects, except

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