If the Prices in Australia Rise Faster Than Those in Other

question 132

Multiple Choice

If the prices in Australia rise faster than those in other countries,

• A)then interest rate parity must not hold.
• B)the exchange rate falls.
• C)the interest rate in Australia falls.
• D)the exchange rate rises.

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Definitions:

Central Government

The national or federal government, responsible for the administration and governance of a country as a whole.

Convention in Philadelphia

The Convention in Philadelphia, also known as the Constitutional Convention of 1787, was a meeting where the Constitution of the United States was drafted to replace the Articles of Confederation.

Rhode Island

The smallest U.S. state by area, known for its sandy shores and seaside colonial towns. It played a significant role in the American Revolution.

Massachusetts

A state in the northeastern United States, known for its significant historical sites related to the early history of the nation.