Assume That the U

question 47

Multiple Choice

Assume that the U.S. and Chile nominal interest rates are equal. Then, the U.S. nominal interest rate decreases while the Chilean nominal interest rate remains stable. According to the international Fisher effect, this implies expectations of ____ than before, and that the Chilean peso should ____ against the dollar.

• A) lower U.S. inflation; depreciate
• B) lower U.S. inflation; appreciate
• C) higher U.S. inflation; depreciate
• D) higher U.S. inflation; appreciate

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Definitions:

Singles

Individuals who are not currently in a marital or a steady romantic relationship, highlighting the state of being unmarried or not involved romantically.

Involved

Engaged or having an active part in something, indicating participation or interest in the matter at hand.

Parents

are guardians or caretakers of offspring, responsible for their upbringing, care, and well-being.

Census Bureau

A national agency responsible for collecting, analyzing, and publishing statistical data about the population, economy, and resources of a country.