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Inflation and Purchasing Power Parity Assignment | Homework For You

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May 22nd, 2020
Question 6 (4 points)  If inflation in country A exceeds inflation in country B, purchasing power parity implies that:
O A) the currency of country A will depreciate relative to the currency of country В.
the currency of country B should depreciate relative to the currency of country A.
the inflation rate in country A will fall to match the inflation rate in country B.
the inflation rate in country B will rise to match the inflation rate in countryHomework For You
Question 7 (4 points) If inflation in country A exceeds inflation in country B, we can express the percentage change in the units of currency of country A per unit of currency of country B as:
O A) the inflation rate in country B – the inflation rate in country A.
O B) the inflation rate in country A – the inflation rate in country B.
O C) the inflation rate in country A divided by the inflation rate in country B.
O D) the inflation rate in country A times the inflation rate in country B. Get Finance homework help today

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