Suppose Argentina Has a 10% Rate of Inflation, While Inflation

question 252

Multiple Choice

Suppose Argentina has a 10% rate of inflation, while inflation is 3% in the United States. If exchange rates do not change

• A) U.S. goods will have a disadvantage in the world market compared to Argentina.
• B) Argentine goods will become more expensive in the United States.
• C) since real exchange rates already take inflation into consideration, the inflation should have no effect on global trade.
• D) goods made in Argentina will become cheaper because pesos have lost their value.

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Definitions:

Open-Class Societies

Societies characterized by fluid social systems in which individuals can change their social status, class, or mobility through their actions, contributions, or achievements.

Unilineal Descent

A system of lineage or ancestry tracing in which descent is reckoned either through the male line (patrilineal) or the female line (matrilineal) exclusively.

Eskimo

A term historically used to describe indigenous peoples of the Arctic regions of Greenland, Canada, and Alaska, known for their unique adaptations and cultural practices in cold environments. The preferred term is now Inuit or Yupik, depending on the groups' location and identity.

Kinship Terminology

The words and phrases used in a language to describe specific relationships within a family structure or kinship system.