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    Economics-Macroeconomics
  4. Exam
    Exam 9: The Exchange Rate and the Balance of Payments
  5. Question
    According to Purchasing Power Parity, a Rise in Inflation in the United
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According to Purchasing Power Parity, a Rise in Inflation in the United

Question 151

Question 151

Multiple Choice

According to purchasing power parity, a rise in inflation in the United States. relative to the rest of the world will lead to


A) a balance of payments surplus.
B) a balance of payments deficit.
C) an exchange rate appreciation.
D) an exchange rate depreciation.

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