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.

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Definitions:

Hearing Capability

The ability or capacity to perceive sounds by detecting vibrations through an organ such as the ear.

Newborns

Infants who are in the initial period after birth, typically considered the first few weeks of life, characterized by rapid growth and development.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, spanning from birth to about 2 years, where infants learn through interacting with the environment using their senses and motor actions.

Ethnic Diversity

The inclusion or representation of individuals from a variety of cultural, national, racial, and religious backgrounds within a community or organization.