Which of the following conditions would cause a country's currency to depreciate relative to another country's currency?
A) a lower rate of economic growth
B) a lower rate of inflation
C) a lower rate of interest
D) lower costs of production
E) a higher unemployment rate

Question

Quizplus · Accepted Answer

A lower rate of interest can lead to currency depreciation as it may result in reduced foreign investment, decreasing demand for the currency.

Which of the Following Conditions Would Cause a Country's Currency