According to the Principle of Purchasing Power Parity, the 2001

question 44

Multiple Choice

According to the principle of purchasing power parity, the 2001 devaluation of the Argentine peso:

• A) increased the inflation rate in Argentina relative to the inflation rate in the United States.
• B) made Argentine imports from the United States cheaper.
• C) decreased the inflation rate in Argentina relative to the inflation rate in the United States.
• D) had no impact on the Argentine inflation rate.

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