​Assume That the U

question 52

Multiple Choice

​Assume that the U.S. and Chile nominal interest rates are equal. Then, the U.S. nominal interest rate decreases while the Chilean nominal interest rate remains stable. According to the international Fisher effect, this implies expectations of ____ than before, and that the Chilean peso should ____ against the dollar.

• A) ​lower U.S. inflation; depreciate
• B) ​lower U.S. inflation; appreciate
• C) ​higher U.S. inflation; depreciate
• D) ​higher U.S. inflation; appreciate

---

Definitions:

Bipolar Disorder

A psychological disorder marked by significant fluctuations in mood, ranging from periods of intense happiness (mania or hypomania) to profound sadness (depression).

Schizophrenia

A chronic brain disorder characterized by symptoms such as delusions, hallucinations, disorganized speech, and impaired cognitive ability.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about different aspects of life.

Excessive Anxiety

A state of persistent and overwhelming worry and fear that is disproportionate to the actual source of stress in one's life.