Suppose a country is undergoing political, economic, and social turmoil. Many foreign businesses no longer wish to buy either goods or financial securities in this country. The country's currency would be expected to

Question

Quizplus · Accepted Answer

When foreign businesses lose confidence in a country due to political, economic, and social turmoil, they are less likely to buy goods or financial securities from that country, which leads to a decrease in demand for the country's currency. As a result, the currency is expected to depreciate in value.

Suppose a Country Is Undergoing Political, Economic, and Social Turmoil