A country would tend to experience currency depreciation relative to other countries if:

Question

Quizplus · Accepted Answer

All of the above can contribute to currency depreciation relative to other countries. A decrease in foreign demand for exports can lead to a decrease in demand for the country's currency, making it less valuable. Similarly, if investors see greater profitability in other countries, they may shift their investments away from the country, leading to a decrease in demand for its currency. Expectations of future depreciation can also lead to increased selling of the currency in question, further driving down its value.

A Country Would Tend to Experience Currency Depreciation Relative to Other