Anghona recently faced a severe economic crisis. This resulted in most companies going bankrupt with reduced employment rates all over the nation. In essence, Anghona experienced a negative gross domestic product (GDP). Which of the following statements was likely to be true of the nation of Anghona in this scenario?

Question

Quizplus · Accepted Answer

A negative GDP growth often leads to a depreciated currency because investors lose confidence in the economy, leading to a decrease in the value of the nation's currency.

Anghona Recently Faced a Severe Economic Crisis