If the Exchange Rate Between the U

question 83

Multiple Choice

If the exchange rate between the U.S. dollar and the Euro is $1.20 per Euro and the annual rate of inflation is 5 percent in the United States and 10 percent in Europe, what will be U.S. dollar per Euro exchange rate in one year?

• A) 1.145
• B) 0.8730
• C) 1.257
• D) 0.7955

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Definitions:

Political Organization

The way in which a society creates and structures its political institutions, processes, and relationships to make collective decisions and govern behavior.

Chiefdoms

A form of hierarchical political organization in non-industrial societies usually based on kinship, and led by a chief.

Hereditary

Relating to characteristics, properties, or conditions that are passed from parents to their offspring through genes.

Natural Selection

The evolutionary process through which factors in the environment exert pressure, favoring some individuals over others to produce the next generation.