1 provide reasoning for why highly inflated countries tend, Ask an Expert

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1. Provide reasoning for why highly inflated countries tend to have weak home currencies.

2. Identify the inflation rate of your home country and some well-known foreign country. Then identify the percentage change of your home currency with respect to that foreign country. Did the currency change in the direction and by the magnitude that you would have expected according to PPP? If not, offer possible reasons for this discrepancy.

3. Identify the quoted one-year interest rates in your home country and in a well-known foreign country as of one year ago. Also determine how your home currency changed relative to this foreign currency over the last year. Did the currency change according to the IFE theory? If not, does this information disprove IFE? Elaborate.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91994637

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