The US Inflation Rate Is Expected to Be 4 Percent Over

question 7

Multiple Choice

The U.S. inflation rate is expected to be 4 percent over the next year, while the European inflation rate is expected to be 3 percent. The current spot rate of the euro is $1.03. Using purchasing power parity, the expected spot rate at the end of one year is $____.

• A)1.02
• B)1.03
• C)1.04
• D)none of the above

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Definitions:

Specific Action

A particular, well-defined step taken to achieve a goal or objective.

Inconvenience

A mild annoyance or discomfort that causes a temporary interruption or difficulty in a person's routine or plans.

Consequences

The outcomes or effects that result from a particular action or set of conditions, often in terms of cause and effect.

Professional Tone

The formal or semi-formal manner of communication that is used in the workplace or when conducting business, which conveys respect and seriousness.