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If Country a Experiences Rapid Inflation While Country B Has

Question 95

Multiple Choice

If country A experiences rapid inflation while country B has a stable price level, this will:


A) shift the demand curve for country A's currency in the foreign exchange market to the right.
B) discourage imports to the country whose currency has depreciated.
C) discourage exports to the country whose currency has depreciated.
D) encourage foreign travel by the citizens of the country whose currency has depreciated.

Correct Answer:

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