If Inflation in Country a Exceeds Inflation in Country B

question 94

Multiple Choice

If inflation in country A exceeds inflation in country B, purchasing power parity implies that:

• A) the currency of country B should depreciate relative to the currency of country A.
• B) the inflation rate in country B will rise to match the inflation rate in country A.
• C) the currency of country A will depreciate relative to the currency of country B.
• D) the inflation rate in country A will fall to match the inflation rate in country B.

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Definitions:

Alternative-choice Close

A sales technique that presents the customer with a choice between two options, encouraging a decision to purchase.

Girl Scout Cookies

A variety of cookies sold by Girl Scouts in the United States as a fundraiser for their organization.

Asking for Order

The step in a sales process where the salesperson directly requests the potential customer to make a purchase decision.