An increase in a nation's rate of inflation is caused by an oversupply of money and this eventually leads to a decrease in the value of the nation's currency.

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When there is an oversupply of money in an economy, it typically leads to inflation, which is the general increase in prices and fall in the purchasing value of money. As inflation increases, the value of the nation's currency decreases in terms of its purchasing power and potentially in its exchange rate with foreign currencies. This is because more of the inflated currency is needed to buy the same amount of goods or services as before, indicating a decrease in its value.

An Increase in a Nation's Rate of Inflation Is Caused