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AP Macroeconomics
Unit 6 – Open Economy – International Trade and Finance
Topic 6.2
What effect does inflation have on exchange rates?
Low inflation in one country leads to a depreciation of its currency
High inflation in one country leads to a depreciation of its currency
Low inflation in one country has no effect on its currency
High inflation in one country leads to an appreciation of its currency
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AP Macroeconomics - 6.2 Exchange Rates
Key terms
Exchange Rates
Inflation
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About Us
About Fiveable
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Careers
Testimonials
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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