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20. If Country X is experiencing higher inflation than Country Y, the currency of Country X will ____ with respect to the currency of Country

20. If Country X is experiencing higher inflation than Country Y, the currency of Country X will ____ with respect to the currency of Country Y over time.

____

  1. Appreciate
  2. Depreciate
  3. Have no impact
  4. Stabilize as the government can control the foreign exchange market

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