Relative inflation rates affect interest rates, exchange rates, the overall economic health of a country, and the operations and profitability of multinational companies. Consider the following statement: Countries with lower inflation rates will have lower interest rates.   If companies borrow from countries with low interest rates, the potential gains from the interest savings will likely be (multiplied or offset) by the

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A: Flexible exchange rates are those that have been based on the worldwide supply and demand of a given…