A depreciation of a nation's currency is:
A)inflationary for the nation
B)deflationary for the nation
C)deflationary for the trade partner
D)any of the above

Name: A depreciation of a nation's currency is: A)inflationary for the nation B)deflationary for the nation C)deflationary for the trade partner D)any of the above
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Question

Quizplus · Accepted Answer

A depreciation of a nation's currency makes imports more expensive and exports cheaper, which can lead to higher prices domestically, thus being inflationary for the nation.

A Depreciation of a Nation's Currency Is