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Inflation in the US


Do the following events cause the dollar to appreciate or depreciate against the Euro?
1. Health experts discover that red wine, espacially French or Italian red wine, lowers cholesterol.
2. GDP falls in nations across Europe.
3. The United States experiences a higher inflation rate than does Europe.
4. The United States runs a large budget deficit.
5. The U.S. dollar is expected to depreciate.

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