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Course: AP®︎/College Macroeconomics > Unit 6

Lesson 4: Effect of changes in policies and economic conditions on the foreign exchange market
Economics
AP®︎/College Macroeconomics
Open economy: international trade and finance
Effect of changes in policies and economic conditions on the foreign exchange market
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Foundational concepts: determinants of currency supply and currency demand

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Problem

Japan and India are trading partners. Japan's currency is the yen and India's currency is the rupee.
Which of the following happens when the supply of the rupee increases?
Choose 1 answer: