In 2016 Venezuela Was Expected to Experience Inflation of Up

question 235

Multiple Choice

In 2016 Venezuela was expected to experience inflation of up to 700%. Given that central bank loss of independence tends to lead to inflation, we should expect this event to cause inflation to ________ and the real exchange rate to ________ between the two counties.(Assume the nominal exchange does not change, and that Canada is the "domestic" country) .

• A)rise in Venezuela relative to Canada; fall
• B)fall in Venezuela relative to Canada; fall
• C)rise in Venezuela relative to Canada; rise
• D)fall in Venezuela relative to Canada; rise
• E)fall in Venezuela relative to Canada; remain unchanged

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Definitions:

Less Traditional

Deviating from established customs, beliefs, or practices, often by embracing newer or more progressive norms and values.

The Dream

According to Daniel Levinson and his colleagues, the drive to become someone, to leave one’s mark on history, which serves as a tentative blueprint for the young adult.

Boomerang Generation

Young adults who return to live with their parents after a period of independence, often due to economic factors.

Financial Reasons

Refers to the monetary factors or considerations that influence decisions, actions, or outcomes.