• 2022-06-12
    If the rate of inflation in the United States is 4% and the rate of
    inflation in the United Kingdom is 3%, relative purchasing power
    would predict that( )
    A: the pound will appreciate relative to the dollar.
    B: the pound will depreciate relative to the dollar.
    C: both the dollar and the pound will depreciate due to inflation.
    D: both the dollar and the pound will appreciate due to inflation.