Country A has a higher inflation rate than Country B. In this case Country A will have the:

Question

Quizplus · Accepted Answer

When a country has a higher inflation rate than another, its currency tends to depreciate in value relative to the other country's currency. This is because the higher inflation rate erodes the purchasing power of the currency, making it less attractive to hold. As a result, investors may sell off the currency, causing its value to decline.

Country a Has a Higher Inflation Rate Than Country B