question_answer

      Other things being equal, what would be the impact of an increase in net capital inflow on the Indian currency?

A) There would be an increase in the demand for the American dollar and an appreciation of the currency.

B) There would be a decrease in the demand for the rupees (Rs.) and a depreciation of the currency.

C) There would be an increase in the supply of the American dollar and an appreciation of the currency.

D) There would be a decrease in the supply of the American dollar and a depreciation of the currency.