International markets expect inflation to average

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Reference no: EM13771295

Suppose that international markets expect inflation to average 1.7% in germany for the foreseeable future, and U.S. inflation is expected to average 1.5%. Based on that information one should expect the dollar to:

Appreciate 3.2% per year

Depreciate 3.2% per year

Appreciate .2% per year

Depreciate .2% per year

Be unchanged since inflation is a national, not an international, phenomenon

Reference no: EM13771295

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