If the inflation rises fast in Country A relative to Country B, explain how this would impact country A’s demand for country B’s currency; supply of country B’s currency for sale; and the equilibrium level of country B’s currency.

if the interest rate in Country A is less relative to interest rate in Country B, explain how this would impact country A’s demand for country B’s currency; supply of country B’s currency for sale; and the equilibrium level of country B’s currency.

If the government in Country B removes major restrictions on imports, explain how this would impact country A’s demand for country B’s currency; supply of country B’s currency for sale; and the equilibrium level of country B’s currency.

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1 Impact of fastrising inflation in Country A relative to Country B When inflation rises rapidly in Country A compared to Country B it will affect the demand supply and equilibrium level of Country Bs ... View the full answer