Exchange Rates

Country A and Country B has a 1=1 exchange rate. Predict what will happen to the exchange rate if the following scenarios happen. Explain your answer.

1 There is a high inflation rate in country B? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2 Country A is a popular tourist destination for country B.

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3 Country B placed high taxes on country A's imports.

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4 The interest rates of country B becomes low.

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