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The expected long-term inflation rate in the US rose sharply while remaining steady in Brazil and China. The exchange rates moved to reflect these views.
The expected long-term inflation rate in the US rose sharply while remaining steady in Brazil and China. The exchange rates moved to reflect these views. Which of the following would be true?
A) Imported batteries from China would reduce the profits of the U.S. plant.
B) The US plant will be able to increase its profits because it imports batteries from China.
C) The US plant would be able to lower its price without hurting profits.
D) Imports from Brazil would be more attractive to US consumers.
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