Theoretically,a country in which price inflation is very high should expect to see its currency depreciate against that of countries in which inflation rates are lower.

Question

Quizplus · Accepted Answer

This is because investors will demand a higher return on their investment in order to compensate for the higher inflation rate, which will result in a lower demand for the currency and its subsequent depreciation.

Theoretically,a Country in Which Price Inflation Is Very High Should