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.