Based only on the relative currency appreciation or depreciation, which country’s exports would likely have increased?

On January 1, 2008 the exchange rate between the U S dollar (S) and Indian Rupee (Rs) was $t = Rs 39. 2676. On January 1, 2009 the rate was Rs 1 = $0,0205.

Based only on the relative currency appreciation or depreciation, which country’s exports would likely have increased?
A . India
B. U.S
C. Neither India or U.S
D. Both India and U.S

View Answer

Answer: B