The Ratio of Expected Spot Rate to Current Spot Rate

question 99

Multiple Choice

The ratio of expected spot rate to current spot rate for $/£ is 1.02 and the inflation rate in the United States is 5%. What is the approximate inflation rate in the United Kingdom?

• A) 1.3%
• B) 2.9%
• C) 4.1%
• D)7.0%

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Definitions:

Germany

A country in Central Europe known for its rich history, cultural heritage, and as a major economic power.

Psychodynamic

An approach in psychology that emphasizes systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Sociocultural

Pertaining to the influence of social and cultural factors on an individual's behavior and mental processes.

Biological

Pertains to the science of life or living matter in all its forms and phenomena, especially with reference to origin, growth, reproduction, structure, and behavior.