What happens to a country's currency when its government raises taxes?
In economics, does the currency depreciate or appreciate?
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This entry was posted on Saturday, May 30th, 2009 at 2:12 am and is filed under Currency Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
May 30th, 2009 at 2:12 am
Taxes raise the level of public saving, More national savings means the exchange rate declines (currency decreases in value).