Bangladesh and india are trading partners, and that there are capital flows between the two countries. currently the nominal exchange rate is about 1.2 bangladeshi taka per indian rupee. suppose that, ceteris paribus, the opportunity cost of consumption in bangladesh falls. use this information to discuss the impact on the two foreign exchange markets - see parts a-f below. (do not assume conditions outside of this question. simply respond to the factor that is changing in the question, ceteris paribus.) you are not required to draw graphs. in the bangladeshi foreign exchange market, explain the impact (if any) on the demand for the indian rupee. in the bangladeshi foreign exchange market, explain the impact (if any) on the supply of the indian rupee. in the indian foreign exchange market, explain the impact (if any) on the demand for the bangladeshi taka. in the indian foreign exchange market, explain the impact (if any) on the supply of the bangladeshi taka. does the indian rupee appreciate or depreciate? provide an example of a new exchange rate. does the bangladeshi taka appreciate or depreciate? provide an example of a new exchange rate and make sure that you have mirrored the rate you have chosen in part (e) above.
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Bangladesh and india are trading partners, and that there are capital flows between the two countrie...
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