If the rate of inflation in Country A is higher than in Country B,then ________.

Name: If the rate of inflation in Country A is higher than in Country B,then ________.
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If the rate of inflation in Country A is higher than in Country B, then the prices of goods and services in Country A will increase faster than in Country B. This means that the currency of Country A will have less purchasing power than before, so in nominal terms, it should depreciate relative to the currency of Country B.

If the Rate of Inflation in Country a Is Higher