A contry currency depreciate if its inflation rate is less

Reference no: EM1329508

Local currency

Explain whether you agree or disagree with each of the following statements.

a) A nation's currency will depreciate if its inflation rate is less than that of its trading partners.

b) A nation whose interest rate falls more rapidly than that of other nations can expect the exchange value of its currency to depreciate.

c) A nation that experiences higher growth rates in productivity than its trading partners can expect the exchange value of its currency to appreciate.

Reference no: EM1329508

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