If Econia has a higher inflation rate than Macroland, then the currency of Econia will tend to _____ in relation to Macroland's currency.

Question

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When a country experiences a higher inflation rate than another, its currency tends to lose value or depreciate gradually against the currency of the country with lower inflation. This is because higher inflation reduces purchasing power and makes the currency less attractive to investors.

If Econia Has a Higher Inflation Rate Than Macroland, Then