If currency speculators believe South Korea will have much lower inflation in the future than the United States, then this event is most likely to cause the South Korean won to:

Question

Quizplus · Accepted Answer

If South Korea is expected to have lower inflation than the United States, the South Korean won is likely to appreciate because lower inflation can lead to higher purchasing power and attractiveness of the currency. Consequently, the U.S. dollar would depreciate relative to the won.

If Currency Speculators Believe South Korea Will Have Much Lower