Asked by
Isabel Jaramillo
on Nov 16, 2024
Verified
In the 1970s and 1980s the U.S. dollar depreciated against the German mark and appreciated against the Italian lira because U.S. inflation was lower than in Germany but higher than in Italy.
Appreciated
An increase in the value of an asset or currency over time, typically due to market dynamics such as demand and supply.
Depreciated
A decrease in the value of an asset over time, typically due to wear and tear or obsolescence.
Inflation
The pace of escalation in the overall price environment for goods and services, lessening the ability to procure.
- Acquire knowledge of the consequences that inflation has on exchange rates and purchasing power in the international economic sphere.
Verified Answer
SB
Learning Objectives
- Acquire knowledge of the consequences that inflation has on exchange rates and purchasing power in the international economic sphere.