The fall in the value of the domestic currency will sharply reduce the purchasing power of its people.

Question

Quizplus · Accepted Answer

When the value of the domestic currency falls, it takes more of the domestic currency to purchase the same amount of goods and services. This means that the purchasing power of the people in that country decreases, as they can now buy fewer goods and services than before with the same amount of money.

The Fall in the Value of the Domestic Currency Will