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Question
If Rs 150 are required to buy $2, instead of Rs 100 earlier, then:
Options:
A .  both depreciation of the domestic currency and rise in the import bill occur
B .  rupee value of import bill will increase
C .  domestic currency has appreciated
D .  domestic currency has depreciated
Answer: Option A
:
A
This is a case of depreciation, and the import bill rises as a result.

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