If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to?

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Academy of PakistanTest & Learning

804Active Users

116EconomicsMedium

Abe in short supply

Bappreciate

Cdepreciate

Drevalue

Correct answer

C. depreciate

Explanation

The correct answer is depreciate.

If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to? - Answer and Explanation | Academy of Pakistan