If investors expect a decrease in the value of the Thai baht vis-à-vis other currencies, their actions will cause:

Question

Quizplus · Accepted Answer

Expectations of a currency's depreciation can lead to actions, such as selling the currency or shorting it, which increase its supply in the foreign exchange market. This increased supply, in turn, can accelerate the currency's depreciation as investors try to exit their positions before the currency loses more value.

If Investors Expect a Decrease in the Value of the Thai