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when inflation goes up in one country (like china) more so than america? what happens to the currencies of each country and why in relation to supply and demand of currencies?

2006-12-07 13:02:40 · 1 answers · asked by vimpact2000 1 in Social Science Economics

1 answers

Other things being equal, a rise in inflation in country X will devalue its currency in units of currency of country Y. The supply of country X's currency has gone up and the foreign demand for it hasn't.

2006-12-09 05:15:39 · answer #1 · answered by MBK 7 · 0 0

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