Suppose Argentina Has a 10% Rate of Inflation,while Inflation Is

question 215

Multiple Choice

Suppose Argentina has a 10% rate of inflation,while inflation is 3% in the United States.If exchange rates don't change:

• A) U.S.goods will have a disadvantage in the world market compared to Argentina.
• B) Argentine goods will become more expensive in the United States.
• C) since real exchange rates already take inflation into consideration,the inflation should have no effect on global trade.
• D) goods made in Argentina will become cheaper,because their pesos have lost their value.

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Definitions:

Intensity

The magnitude or strength of a phenomenon or a quality, often used in contexts ranging from physics to emotional experiences.

Cochlea

A spiral-shaped, fluid-filled inner ear structure crucial for converting sound waves into electrical signals that can be interpreted by the brain as sound.

Tectorial Membrane

A structure located within the cochlea of the inner ear, playing a crucial role in the process of hearing by interacting with hair cells.

Basilar Membrane

A membrane in the cochlea of the inner ear that supports the Organ of Corti, crucial for converting sound vibrations into neural signals.