If the Government of India Made Policy Changes That Increased

Multiple Choice

If the government of India made policy changes that increased national saving, which of the following best predicts the consequences?

A) The real exchange rate of the rupee would depreciate, and Indian net exports would rise.
B) The real exchange rate of the rupee would depreciate, and Indian net exports would fall.
C) The real exchange rate of the rupee would appreciate, and Indian net exports would rise.
D) The real exchange rate of the rupee would appreciate, and Indian net exports would fall.