On May 1, 2XX3, a bundle of goods in China costs 5,000,000 yuan, while the same goods cost $60,000 in the United States. Over the next year, inflation in the U.S. is expected to be 3%, while inflation in China is expected to be 5%. Which of the following statements is true? A. In one year the exchange
On May 1, 2XX3, a bundle of goods in China costs 5,000,000 yuan, while the same goods cost $60,000 in the United States. Over the next year, inflation in the U.S. is expected to be 3%, while inflation in China is expected to be 5%. Which of the following statements is true?
| A. |
In one year the exchange rate is $84.9515/yuan and the dollar has appreciated against the yuan.
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| B. |
In one year the exchange rate is $0.0118/yuan and the dollar has appreciated against the yuan. |
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| C. |
In one year the exchange rate is $84.9515/yuan and the dollar has |
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| D. |
In one year the exchange rate is $0.0118/yuan and the dollar has depreciated against the yuan. |
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| E. |
In one year the exchange rate is 84.9515yuan/$ and the dollar has depreciated against the yuan. |
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