Assuming the United States is the "domestic" country, if the real exchange rate between the United States and France increases from 1.5 to 1.8,
A) the prices of U.S. goods and services have increased by 53% relative to France.
B) the prices of U.S. goods and services have decreased by 16% relative to France.
C) the prices of U.S. goods and services have increased by 20% relative to France.
D) the prices of U.S. goods and services have increased by 3% relative to France.
C
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One part of the explanation for the persistently high rates of unemployment in Western Europe is:
A. labor market rigidities. B. productivity growth. C. increases in labor supply. D. increases in labor demand.
The amount of money that people wish to hold to use in transactions varies directly with
A) the income tax rate. B) their planned near-term purchases. C) the money supply. D) the interest rate.
The chief economist of the country of Elbonia has predicted that the new policies adopted by the government will lead to higher economic growth accompanied by lower rates of inflation. The currency of Elbonia is expected to: a. weaken
b. appreciate. c. depreciate. d. devaluate.
Explain the difference between the GDP deflator and the Consumer Price Index
What will be an ideal response?