​Assume That the New Zealand Inflation Rate Is Higher Than

Multiple Choice

​Assume that the New Zealand inflation rate is higher than the U.S. inflation rate. This will cause U.S. consumers to ____ their imports from New Zealand and New Zealand consumers to ____ their imports from the United States. According to purchasing power parity (PPP) , this will result in a(n) ____ of the New Zealand dollar (NZ$) .

A) ​reduce; increase; appreciation
B) ​increase; reduce; depreciation
C) ​reduce; increase; depreciation
D) reduce; increase; appreciation