The Effect of an Increase in a Country's Inflation on Its

question 53

Multiple Choice

The effect of an increase in a country's inflation on its net exports is equivalent to

• A)a depreciation of its currency.
• B)an appreciation of its currency.
• C)an increase in the prices of its imports.
• D)a decrease in the prices of its exports.
• E)a decrease in the price of its currency in term of a foreign currency.

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Definitions:

Evolution

The process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Allele

A variant form of a gene at a particular location on a chromosome that controls a specific trait.

Genotype

The genetic makeup of an organism, determining inherited characteristics.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.