Q
Under a system of floating exchange rates there is a general tendency for ?
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A
A. Exchange rates to be insensitive to the differential rates of inflation between countries
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B
B. The currencies of relatively high-inflation countries to depreciate
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C
C. The currencies of relatively high inflation countries to appreciate
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D
D. The currencies of relatively low inflation countries to depreciate
Correct Answer:
B. B. The currencies of relatively high-inflation countries to depreciate
