Under a system of floating exchange rates there is a general tendency for ?

A. the currencies of relatively low inflation countries to depreciate

B. exchange rates to be insensitive to the differential rates of inflation between countries

C. the currencies of relatively high-inflation countries to depreciate

D. the currencies of relatively high inflation countries to appreciate

Found an error? Read our corrections policy and report it in the comments below.

Be the first to comment if anything wrong with this mcq
Your comment successfully submitted!
It will automatically posted after review and approval by our staff member.