Specification: Circular Flow of Income, Exchange Rates, Balance of Payments

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India’s exporters face crunch as coronavirus pummels economy

  • Identify the withdrawals and injections associated with the circular flow of income. the term ‘market failure’

  • Distinguish between an induced variable and an autonomous variable

  • Briefly explain why exports are considered to be autonomous

  • Analyse the implications of a protracted global slowdown on India’s trade balance

  • The value of the Indian Rupee (INR) is depreciating. With reference to the J-curve, discuss whether the depreciation of the INR is likely to improve India’s trade balance

Gavin Clarke, Emmanuel College

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