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Under What Circumstances Would a Country Tend to Experience Currency

Question 68

Multiple Choice

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


A) Real interest rates rise relative to other countries.
B) Traders in the foreign currency markets expect the value of the currency will fall in the near future.
C) The foreign demand for its exports increases.
D) The profitability of investments in other countries decreases relative to that country.

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