QUESTION 14According to the principle of purchasing power parity, the 2001 devaluation of the Argentine peso: a.had no impact on the Argentine inflation rate. b.made Argentine imports from the United States cheaper. c.decreased the inflation rate in Argentina relative to the inflation rate in the United States. d.increased the inflation rate in Argentina relative to the inflation rate in the United States. QUESTION 15An increase in the money supply _____ the interest rate in the short run but _____ the interest rate in the long run. a.lowers; does not affect b.does not affect; lowers c.raises; lowers d.does not affect; raises

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Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 9PA

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QUESTION 14

According to the principle of purchasing power parity, the 2001 devaluation of the Argentine peso:

	a.	had no impact on the Argentine inflation rate.
	b.	made Argentine imports from the United States cheaper.
	c.	decreased the inflation rate in Argentina relative to the inflation rate in the United States.
	d.	increased the inflation rate in Argentina relative to the inflation rate in the United States.

QUESTION 15

An increase in the money supply _____ the interest rate in the short run but _____ the interest rate in the long run.

a.
lowers; does not affect

b.
does not affect; lowers

c.
raises; lowers

d.
does not affect; raises

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