What Is the Expected German Inflation Rate If 3% Inflation

question 1

Multiple Choice

What is the expected German inflation rate if 3% inflation is expected in the United States, the spot exchange rate is €1.5/$ and the expected spot rate is €1.6/$?

• A) 2.81%
• B) 7.10%
• C) 9.87%
• D)11.43%

---

Definitions:

Conflict Theorists

Scholars who focus on the societal struggles between different classes or groups, emphasizing the role of conflict, competition, and constraint within society.

Criminal Law

The body of law that relates to crime and the punishment of individuals who violate laws designed to protect public safety and welfare.

Affluent

Characterized by having a large amount of wealth, resources, or goods; wealthy.

Biological Theories

Concepts in science and sociology that attribute human behavior and societal differences to inherent physiological and genetic factors.