According to purchasing-power parity,inflation in the U.S.causes the dollar to
A)depreciate relative to all other currencies.
B)depreciate relative to currencies of countries that have lower inflation rates.
C)appreciate relative to all other countries.
D)appreciate relative to currencies of countries that have lower inflation rates.

Question

Quizplus · Accepted Answer

According to purchasing-power parity, if the U.S. experiences higher inflation than another country, the dollar will depreciate relative to that country's currency.

According to Purchasing-Power Parity,inflation in the U