If Country a Experiences Rapid Inflation While Country B Has

question 5

Multiple Choice

If country A experiences rapid inflation while country B has a stable price level, this will:

• A)shift the demand curve for country A's currency in the foreign exchange market to the right.
• B)discourage imports to the country whose currency has depreciated.
• C)discourage exports to the country whose currency has depreciated.
• D)encourage foreign travel by the citizens of the country whose currency has depreciated.