UPSC Civil Services Prelims 2018
Question 22 of 61Indian Economy
How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?
AThese phenomena would not affect India’s macroeconomic stability.
BThese phenomena would increase imports and domestic growth in India.
CThese phenomena could weaken exports, affect capital flows and create external sector uncertainty.
DThese phenomena would automatically reduce inflation and strengthen the rupee.
Correct Answer
The correct answer is hidden
Explanation
33 words hidden ... pressures, and investor sentiment. Together, such developments generate uncertainty in the external sector and can ... 33 words hidden