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Growth of nations

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Explain why you agree or disagree with the following statements:

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

b. A country 's currency will appreciate if its inflation rate is less than that of the rest of the world.

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Growth of nations is discussed very comprehensively in this explanation..

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Explain why you agree or disagree with the following statements:

a. A country that grows faster than its major trading partners can expect the international value of its currency to depreciate.
This statement is incorrect. When the economy is strong and is growing faster, the international value of its currency appreciates. If there a country has financial losses ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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