International value of currency

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A) Do you agree or disagree with the following statements. Explain your answer.

i) A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.

ii) A country that grows faster than its major trading partners can expect the international value of its currency to depreciate.

B) The USA despite having and advanced economy has had episodes of negative balance of payments. Discuss the possible factors that could have led to this over the years.

Reference no: EM133124081

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