Question

if germany has low inflation and italy has high inflation. what will happen in exchange rate?​

Answer 1

Answer:

The currency with the higher inflation rate then loses value and depreciates, while the currency with the lower inflation rate appreciates on the Forex market. - Interest rates: Too high inflation pushes interest rates up, which has the effect of depreciating the currency (less remunerative) on Forex.

Explanation:

please follow and

brainliest