If a country is experiencing higher inflation than another country, in general, the currency of the first country will _______ with respect to the currency of the second country.

Question

Quizplus · Accepted Answer

In general, if a country is experiencing higher inflation than another, its currency will tend to depreciate against the other country's currency. This is because higher inflation reduces the purchasing power of that currency relative to where inflation is lower.

If a Country Is Experiencing Higher Inflation Than Another Country