【单选题】Assume that the U.S. has an 8 percent inflation rate while Mexico has a 4 percent inflation rate. According to relative PPP, the dollar would be expected to:
【单选题】Assume that the United States faces a 5 percent inflation rate while the U.K has a 7 percent inflation rate. According to the relative PPP, the dollar would be expected to:
A.
appreciate by 2 percent against the British pound
B.
depreciate by 2 percent against the British pound
C.
appreciate by 12 percent against the British pound
D.
depreciate by 12 percent against the British pound
【单选题】Assume that the U.S. has a 2 percent inflation rate while Sweden has a 7 percent inflation rate. According to relative PPP, the dollar would be expected to:
A.
Appreciate by 3.5 percent against the Swedish krona.
B.
Depreciate by 3.5 percent against the Swedish krona.
C.
Appreciate by 5 percent against the Swedish krona.
D.
Depreciate by 5 percent against the Swedish krona.