Final answer:
High levels of inflation and low levels of public debt typically cause the value of a nation's currency to fall compared to other currencies, while low levels of unemployment and high levels of export activity can strengthen the currency.
Step-by-step explanation:
One of the factors that typically causes the value of a nation's currency to fall compared to other currencies is high levels of inflation. When a country experiences high inflation, the purchasing power of its currency decreases and it becomes less attractive to investors and foreign buyers. This leads to a decrease in demand for the currency, causing its value to fall.
Another factor that can cause a currency to fall is low levels of public debt. When a country has low levels of debt, it is viewed as more financially stable, which can increase demand for its currency and strengthen its value.
On the other hand, low levels of unemployment and high levels of export activity can have positive effects on a country's currency. Low unemployment and strong export activity indicate a healthy economy, which can attract foreign investors and increase demand for the currency, leading to its appreciation.