The US Inflation Rate Is Expected to Be 4 Percent Over

question 7

Multiple Choice

The U.S. 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 euro is $1.03. Using purchasing power parity, the expected spot rate at the end of one year is $____.

• A)1.02
• B)1.03
• C)1.04
• D)none of the above

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Definitions:

Blind

typically used in experimental design, refers to participants or researchers not being aware of certain crucial aspects of the study to prevent bias.

Verbal Humor

The aspect of humor that involves the use of words to elicit laughter or amusement.

Monolingual

Monolingual describes individuals or societies that speak or use only one language.

Bilingual Children

Children who have the ability to communicate in two languages, either acquired simultaneously in early childhood or sequentially.