Assume That the UK Inflation Rate Is Higher Than the New

question 9

Multiple Choice

Assume that the UK inflation rate is higher than the New Zealand inflation rate. This will cause UK consumers to ____ their imports from New Zealand and New Zealand consumers to ____ their imports from the UK. According to purchasing power parity (PPP) , this will results in a(n) ____ of the New Zealand dollar (NZ$) .

• A) reduce; increase; appreciation
• B) increase; reduce; appreciation
• C) reduce; increase; depreciation
• D) reduce; increase; appreciation.

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Definitions:

Typical

Representing the characteristics of a group, category, or class; usual or expected.

Atypical

Not typical, common or regular; unusual or abnormal in characteristics or behavior.

Deviant

Behavior or actions that deviate from the accepted norms of society.

Conventional

Describes something that is based on or in accordance with what is generally done or believed, typical or traditional.