​Assume That the U

question 33

Multiple Choice

​Assume that the U.S. inflation rate is higher than the New Zealand inflation rate. This will cause U.S. consumers to ____ their imports from New Zealand and New Zealand consumers to ____ their imports from the United States. According to purchasing power parity (PPP) , this will result in a(n) ____ of the New Zealand dollar (NZ$) .

• A) ​reduce; increase; appreciation
• B) ​increase; reduce; appreciation
• C) ​ reduce; increase; depreciation
• D) reduce; increase; appreciation

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Definitions:

Cost-Efficient

Economically advantageous, achieving the best possible outcome or value with the least waste of resources or effort.

Community Rating

A pricing strategy where health insurance premiums are not based on an individual’s health status or age but are the same for all members of a community.

Average Risk

The standard level of chance or probability that an individual will encounter a specific event or condition, used as a baseline in risk assessments.

Individual Premiums

Payments made periodically to an insurance company by individuals to maintain their policy and coverage.