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Under What Circumstances Would a Country Tend to Experience Currency

Question 66

Multiple Choice

Under what circumstances would a country tend to experience currency depreciation relative to other countries?


A) if people in the foreign currency markets expect the value of the currency will rise in the near future
B) if its inflation rate is high relative to other countries.
C) if the profitability of investments within the country increases relative to the rest of the world
D) if the foreign demand for its exports increases

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