According to purchasing power parity, if it took 3.5 Israeli Shekels to buy a dollar this year, but it took 4 to buy it last year, then the dollar has
A) appreciated, indicating inflation was higher in the U.S. than in Israel.
B) appreciated, indicating inflation was lower in the U.S. than in Israel.
C) depreciated, indicating inflation was higher in the U.S. than in Israel.
D) depreciated, indicating inflation was lower in the U.S. than in Israel.
Correct Answer:
Verified
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