Help me plz..
Dear Student,
Depreciation of rupees refers to the situation when the Rupee looses its value in relation to any other foreign currency say USD($).
In simple words it means we need more rupees to buy the a unit of the foreign currency.
Impact on Imports
Imports are likely to fall because when the Rupee depreciates more rupees are required to buy a foreign currency($dollar) so the foreign goods become expensive for the Indians, Hence owing to law of demand (which states that when price of commodity rises its demand falls)the imports are likely to fall.
Regards
Depreciation of rupees refers to the situation when the Rupee looses its value in relation to any other foreign currency say USD($).
In simple words it means we need more rupees to buy the a unit of the foreign currency.
Impact on Imports
Imports are likely to fall because when the Rupee depreciates more rupees are required to buy a foreign currency($dollar) so the foreign goods become expensive for the Indians, Hence owing to law of demand (which states that when price of commodity rises its demand falls)the imports are likely to fall.
Regards