If the USprice Level Is Increasing by 3 Percent Annually and the and the Japanese

question 77

Multiple Choice

If the U.S.price level is increasing by 3 percent annually and the Japanese price level is increasing by 1 percent annually,then according to purchasing-power parity,by about what percent would the nominal exchange rate be changing?

• A)decreasing by 4 percent
• B)decreasing by 2 percent
• C)increasing by 4 percent
• D)increasing by 2 percent

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Definitions:

Extracellular Fluid

The body fluid outside cells, providing a medium for substances to pass between cells and blood vessels.

Resting Membrane Potential

The electrical charge difference across the cellular membrane when a neuron or muscle cell is at rest, typically around -70 mV.

Afterpotential

The electrical changes that occur in a neuron immediately following an action potential, which can affect the neuron's ability to fire again.

Permeability

Permeability refers to the ability of a material or membrane to allow liquids or gases to pass through it.