The Indian Rupee depreciated to an all-time low against the US dollar. ThisThis would have the following impact on India's import:
a. Depreciation of Indian rupee means a fall in the purchasing power of the Indian rupee in terms of the US dollar.
b. This would make foreign goods expensive in India.
c. This would lead to a fall in the demand of goods and services.
● No, I do not agree with this statement.
● A trade deficit occurs when the value of goods imported exceeds the value of goods exported.
● Trade deficit = Value of Imports > Value of exports
● A situation of trade surplus arises when the deficit on trade account is else than the surplus on account of goods.
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