Lumeria,a country,headquarters many multinational enterprises.Its inflation rate is high relative to other countries.In this case,which of the following is most likely to happen?
A) The exchange rate of Lumeria's currency will drop.
B) Lumeria will be able to attract foreign funds.
C) Goods in Lumeria's economy will multiply.
D) Money supply will decrease in Lumeria.

Question

Quizplus · Accepted Answer

High inflation typically leads to a decrease in the value of a country's currency, causing its exchange rate to drop.

Lumeria,a Country,headquarters Many Multinational Enterprises