If currency speculators believe South Korea will have much lower inﬂation in the future than the United States, then this event is most likely to cause the South Korean won to

Question

Quizplus · Accepted Answer

Lower inflation in South Korea compared to the United States makes the South Korean won more attractive, leading to its appreciation and the depreciation of the U.S. dollar.

If Currency Speculators Believe South Korea Will Have Much Lower