Assume That the U

question 57

Multiple Choice

Assume that the U.S. inflation rate is higher than the New Zealand inflation rate. This will cause U.S. consumers to ____ their imports from New Zealand and New Zealand consumers to ____ their imports from the U.S. According to purchasing power parity (PPP) , this will result in a(n) ____ of the New Zealand dollar (NZ$) .

• A) Reduce; increase; appreciation
• B) increase; reduce; appreciation
• C) Reduce; increase; depreciation
• D) reduce; increase; appreciation

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Definitions:

Negative Message

Communication that conveys denial, refusal, or bad news to the recipient in a diplomatic and courteous manner.

Describe the Problem

Involves clearly and concisely stating the issue or challenge that needs to be addressed.

Fixing the Problem

The process of identifying, analyzing, and resolving issues or defects.

Negative Message

Communication that conveys bad news, refusal, or disappointment.