During the period from 1978-2012, the difference between annual inflation rates of EU countries and ...

During the period from 1978-2012, the difference between annual inflation rates of EU countries and the German inflation rate
 
  A) grew at an accelerating rate.
  B) remained fairly constant.
  C) largely disappeared.
  D) went through periods of hyperinflation.
  E) trended upward at a declining rate.

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Question 2 - Under purchasing power parity (PPP), if U.S. monetary growth leads to a long run doubling of the U.S. price level, while Germany's price level remains constant, PPP predicts that the
 
  A) long-run DM price of the dollar will be doubled.
  B) long-run DM price of the dollar will be halved.
  C) long-run DM price of the dollar will remain the same.
  D) short-run DM price of the dollar will be halved.
  E) short-run DM price of the dollar will be doubled.