Question

Inflation and exchange rate with reference to unemployment

Answer 1

Answer:

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Explanation:

Unemployment, Inflation, and the Dollar's Exchange Rate

Unemployment, Inflation, and the Dollar's Exchange RateThis increases their costs and hence forces them to raise prices. Thus, low unemployment causes higher inflation. ... Thus, if low unemployment feeds through into rising inflation, the dollar's currency exchange rate tends to fall.

Answer 2

Explanation:

Unemployment, Inflation, and the Dollar's Exchange Rate

This increases their costs and hence forces them to raise prices. Thus, low unemployment causes higher inflation. ... Thus, if low unemployment feeds through into rising inflation, the dollar's currency exchange rate tends to fall.