Nations which experience relatively high rates of inflation

A) cause inflation in other nations when they export their relatively high priced goods to these nations.
B) will experience a reduction in the value of their currencies in the foreign exchange markets.
C) will not be able to export products if their currencies depreciate in value.
D) will not be able to import products unless their currencies depreciate in value.

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Brianna Peavy · Accepted Answer

Final Answer : B, Explanation :  When a nation experiences high inflation rates, the value of its currency decreases. This makes its exports relatively less expensive, but also makes imports relatively more expensive. As a result, in the foreign exchange markets, the value of the currency will be reduced. This can have negative impacts on the economy and the purchasing power of the general public.

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