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Suppose recent economic data about a country indicates that the inflation rate is expected to become abnormally high and the GDP is likely to slow

Suppose recent economic data about a country indicates that the inflation rate is expected to become abnormally high and the GDP is likely to slow down due to lackluster foreign demand for the near term. The country also has a significant current account deficit and a relatively high level of foreign indebtedness. Discuss the likely effects of the disappointing news on the countrys currency.

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