Multiple Choice
If a dollar currently purchases 12.5 pesos and someone forecasts that in a year it will be 14 pesos, then the forecast is given in
A) real terms and implies the dollar will appreciate.
B) real terms and implies the dollar will depreciate.
C) nominal terms and implies the dollar will appreciate.
D) nominal terms and implies the dollar will depreciate.
Correct Answer:
Verified
Correct Answer:
Verified
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