If Inflation in Country a Exceeds Inflation in Country B

question 94

Multiple Choice

If inflation in country A exceeds inflation in country B, purchasing power parity implies that:

• A) the currency of country B should depreciate relative to the currency of country A.
• B) the inflation rate in country B will rise to match the inflation rate in country A.
• C) the currency of country A will depreciate relative to the currency of country B.
• D) the inflation rate in country A will fall to match the inflation rate in country B.

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Definitions:

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed propositions (premises); a logical structure that uses three parts.

Middle Term

In a categorical syllogism, the term that appears in both premises and links together the major and minor terms.

Syllogism

A form of logical argument that applies deductive reasoning to arrive at a conclusion based on two or more propositions that are asserted or assumed to be true.

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TV programs designed to be suitable and entertaining for all ages, often emphasizing themes of family values and relationships.