If Over the Next Few Years Inflation Is Higher in Mexico

question 12

Multiple Choice

If over the next few years inflation is higher in Mexico than in the U.S. ,then according to purchasing-power parity which of the following should rise?

• A)the U.S.real exchange rate but not the U.S.nominal exchange rate
• B)the U.S.nominal exchange rate but not the U.S.real exchange rate
• C)the U.S.real exchange rate but not the U.S.nominal exchange rate.
• D)neither the U.S.real nor the U.S.nominal exchange rate.

---

Definitions:

Employment Center

A facility or service that provides resources, tools, and support for job seekers and employers.

Homeless People

Individuals who lack stable, safe, and adequate housing, which includes those who sleep on the streets, in shelters, or in temporary accommodations.

Psychotic Disorder

A mental health condition characterized by an impaired relationship with reality, often including delusions, hallucinations, and disordered thinking.

Schizophrenia

A complex psychiatric disorder that affects a person's ability to think, feel, and behave clearly, often characterized by delusions, hallucinations, and disordered thinking.