Economy, asked by anvithahani, 7 months ago

if the rate of inflation in India increases relative to the rate of inflation in Canada then which country will get affected

Answers

Answered by sarthakgholap7

Answer:

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Answered by keshavnarang02607200

Answer:

India will get affected

Explanation:

Changes in purchasing power parity (and therefore inflation) affect the exchange rate. ... 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.

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