The Pound Is Expected to Appreciate by 2% Against the Dollar.If

question 89

Multiple Choice

The pound is expected to appreciate by 2% against the dollar.If the expected inflation rate in the United States is 5% and purchasing power parity holds,what is the expected inflation rate in the United Kingdom?

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

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