Suppose That the Latest Consumer Price Index (CPI)release Shows a Higher

question 14

Multiple Choice

Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the U.S. than was expected. Everything else held constant,the release of the CPI report would immediately cause the demand for U.S. assets to ________ and the U.S. dollar would ________.

• A)increase;appreciate
• B)increase;depreciate
• C)decrease;appreciate
• D)decrease;depreciate

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Definitions:

Variables Of Interest

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Discussion Section

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