​Assume That the U

question 52

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:

Human Races

Social constructs that categorize humans into large and distinct populations or groups by ancestral origins and physical characteristics.

Gini Coefficient

A measure of the distribution of income across a population, used as an indicator of economic inequality.

Wealth Inequality

The unequal distribution of assets among residents of a country, leading to significant differences in wealth across individuals and families.

Racial Disparities

Differences that disproportionately affect individuals of certain races, particularly in areas such as health, imprisonment, education, and employment.