The currencies of countries with high inflation rates relative to Canada have tended to ______,and the currencies of countries with low inflation rates relative to Canada have tended to ______.

Question

Quizplus · Accepted Answer

Countries with high inflation rates tend to have their currencies depreciate in value relative to countries with lower inflation rates. This is because high inflation erodes the purchasing power of a currency, reducing its value. Thus, the currencies of countries with low inflation rates tend to appreciate relative to those with high inflation rates.

The Currencies of Countries with High Inflation Rates Relative to Canada