According to purchasing power parity, a rise in inflation in the United States. relative to the rest of the world will lead to

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According to the purchasing power parity theory, if inflation rises in the United States relative to other countries, the prices of goods and services in the US will increase compared to other countries, which will make them relatively less attractive to foreign buyers. As a result, demand for US dollars will decrease, leading to a depreciation in the exchange rate. This will make US exports cheaper and more competitive, while imports into the US will become more expensive. As a result, a rise in inflation in the US, relative to other countries, will lead to an exchange rate depreciation.

According to Purchasing Power Parity, a Rise in Inflation in the United