While a weak currency can reduce unemployment at home, it can also lead to higher inflation, as local companies are better able to raise prices.

Question

Quizplus · Accepted Answer

A weaker currency can make imports more expensive, which can lead to higher prices for consumers, and local companies may also raise their prices as they have a competitive advantage over foreign companies. This can result in higher inflation.

While a Weak Currency Can Reduce Unemployment at Home, It