The US Inflation Rate Is Expected to Be 4 Percent

question 27

Multiple Choice

The US inflation rate is expected to be 4 percent over the next year, while the European inflation rate is expected to be 3 percent. The current spot rate of the dollar is 0.80 euro. Using purchasing power parity, the expected spot rate at the end of one year is ____ euro to the nearest cent.

• A) 0.81
• B) 0.79
• C) 0.80
• D) None of the above

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Definitions:

Biomass

The total mass of all living organisms in a specific area, habitat, or region.

Weirs

Low dams built across rivers to raise the level of water upstream or regulate its flow for purposes such as irrigation, fish trapping, and water diversion.

Fish Traps

Engineered structures placed in aquatic environments designed to trap fish or other aquatic animals.

Microliths

Small stone tools, typically made by prehistoric peoples, used as spear points or in other sharp implements.