If US Inflation Suddenly Becomes Much Higher Than European Inflation, the the U.S

question 46

Multiple Choice

If U.S. inflation suddenly becomes much higher than European inflation, the U.S. demand for European goods will ____. In addition, the supply of euros to be sold for dollars will ____; both forces will place ____ pressure on the value of the euro.

• A)increase; decline; upward
• B)increase; decline; downward
• C)decrease; increase; upward
• D)decrease; increase; downward
• E)None of these are correct.

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Definitions:

Size Range

The spectrum or distribution of sizes for particles, objects, or phenomena, from the smallest to the largest.

Clasts

Pieces of rock or mineral fragments that are broken off from their parent source and are used in the creation of sedimentary rocks through the process of lithification.

Sedimentary Rocks

Rocks formed by the accumulation or deposition of mineral or organic particles at the Earth's surface, followed by compaction and cementation.

Conglomerate

A coarse-grained clastic sedimentary rock composed of rounded to sub-rounded clasts (pebbles, cobbles, and boulders) in a fine-grained matrix of sand and mud.