Suppose That the Latest Consumer Price Index (CPI)release Shows a Higher

Multiple Choice

Suppose that the latest Consumer Price Index (CPI) release shows a higher inflation rate in the U.S. than was expected. Everything else held constant,the release of the CPI report would immediately cause the demand for U.S. assets to ________ and the U.S. dollar would ________.

A) increase;appreciate
B) increase;depreciate
C) decrease;appreciate
D) decrease;depreciate