In the First Half of 1989 the Inflation Rate in the United

question 100

Multiple Choice

In the first half of 1989 the inflation rate in the United States exceeded that of Japan yet the dollar appreciated relative to the yen.Which of the following facts would explain the failure of the PPP theory to explain the strength of the $ during this period?

• A)the Japanese produced a number of new electronic gadgets much in demand by U.S.consumers
• B)the Exxon oil spill
• C)the Japanese purchased an increasingly large percentage of U.S.government and corporate securities
• D)U.S.citizens participated heavily in the Japanese stock market

---

Definitions:

Clonic Seizures

Seizures that involve repetitive, jerking muscle movements, typically affecting both sides of the body.

Tremors

Involuntary, rhythmic muscle movements involving to-and-fro movements of one or more parts of the body.

Rhythmic Jerking

Repetitive, involuntary jerking movements that occur in a rhythmic pattern, often seen in seizure disorders.