You hold currency from a foreign country.If that country has a higher rate of inflation than the United States,then over time the foreign currency will buy
A)more goods in that country and buy more dollars.
B)more goods in that country but buy fewer dollars.
C)fewer goods in that country but buy more dollars.
D)fewer goods in that country and buy fewer dollars.

Question

Quizplus · Accepted Answer

Higher inflation in the foreign country reduces the purchasing power of its currency, meaning it will buy fewer goods domestically and depreciate against the dollar, buying fewer dollars.

You Hold Currency from a Foreign Country