If Inflation in the United States Rises Relative to the Inflation

question 117

Multiple Choice

If inflation in the United States rises relative to the inflation rate in Mexico,the dollar will __________ in terms of the peso and the peso will __________ in terms of the dollar.

• A) remain unaffected; appreciate
• B) remain unaffected; depreciate
• C) depreciate; remain unaffected
• D) depreciate; appreciate
• E) remain unaffected; remain unaffected

---

Definitions:

Families Earned

Income generated by household members through wages, salaries, investments, or other sources.

Cumulative Share

The total portion or percentage owned or contributed by an individual or entity over time.

Families Earned

Families earned describes the total income generated by all working members of a family, encompassing wages, salaries, benefits, and other forms of income.

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, showing the degree of inequality.