When a Nation's Currency Depreciates, the Country Might

Multiple Choice

When a nation's currency depreciates, the country might

A) have an inflation rate that exceeds the inflation rate in nations with which it trades.
B) have an inflation rate below the inflation rate in nations with which it trades.
C) be responding to an increase in the demand for its currency.
D) be responding to a decrease in the domestic demand for foreign currencies.