The currencies of countries with high inflation rates relative to the United States have tended to , and the currencies of countries with low inflation rates relative to the United States have tended to .
A)appreciate; appreciate
B)appreciate; depreciate
C)depreciate; depreciate
D)depreciate; appreciate

Question

Quizplus · Accepted Answer

Countries with high inflation rates typically have a decrease in purchasing power, making their currency less valuable compared to the US dollar. This leads to a depreciation of their currency relative to the US dollar. Conversely, countries with low inflation rates tend to have an increase in purchasing power, making their currency more valuable compared to the US dollar. This leads to an appreciation of their currency relative to the US dollar.

The Currencies of Countries with High Inflation Rates Relative to the United