If the Inflation Rate in the United States Is Higher

question 44

Multiple Choice

If the inflation rate in the United States is higher than that in Germany and productivity is growing at a slower rate in the United States than it is in Germany,in the long run,

• A) the euro should appreciate relative to the dollar.
• B) the euro should depreciate relative to the dollar.
• C) there should be no change in the euro price of dollars.
• D) it is not clear what will happen to the euro price of dollars.

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Definitions:

Negative Effect

Typo possibly intended to be "Negative Affect," which refers to a wide range of negative emotions such as sadness, anger, and fear. If not a typo, NO.

Conquer Nature

The idea of dominating and controlling the natural environment through human ingenuity and technological advancement.

System

A set of interconnected elements or components that are organized to function together as a complex whole.

Kenneth Boulding

An economist, educator, peace activist, and interdisciplinary philosopher who made contributions in systems theory, ecological economics, and conflict and peace studies.