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Suppose the announced inflation rates are as follows for the selected countries: the United States = 4%; Canada = 5%; and Mexico = 3%. Everything
Suppose the announced inflation rates are as follows for the selected countries: the United States = 4%; Canada = 5%; and Mexico = 3%. Everything else held constant, we would expect the nominal value of the United States dollar to ____ against the Canadian dollar and _____ against the Mexican peso.
Select one:
A.appreciate; appreciate
B.appreciate; depreciate
C.depreciate; depreciate
D.depreciate; appreciate
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