Explain in a paragraph, If a country experiences an increase in inflation relative to other countries,...

Explain in a paragraph, If a country experiences an increase in inflation relative to other countries, then their current account will increase.

Expert Solution

in a nutshell

high inflation leads to weaker of local currency compare to other countries. foreign exchange rate decrease with others countries therefore leads to fiscal deficit.and current account will increase

jeff jeffy answered 6 months ago

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