If the USInflation Rate Is 3 Percent Annually and the Japanese Inflation

question 28

Multiple Choice

If the U.S.inflation rate is 3 percent annually and the Japanese inflation rate is 1 percent annually,by what percent would the dollar price of the yen need to change according to purchasing power parity?

• A) Appreciate by 2 percent
• B) Appreciate by 1 percent
• C) Depreciate by 2 percent
• D) Appreciate by 3 percent
• E) Depreciate by 1 percent.

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Definitions:

Spinal Cord

The long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem down the vertebral canal to the lower back, facilitating nerve impulses between the brain and the rest of the body.

Basal Ganglia

A group of structures linked to the thalamus in the base of the brain and involved in coordination of movement.

Forebrain

The anterior part of the brain, including the cerebral hemispheres, thalamus, and hypothalamus, involved in complex functions.

Afferent

Relating to or denoting nerve fibers that carry sensory information toward the central nervous system.