When the price level in France increases while the exchange rate and the price level in the United States remain the same, the result is
A) U.S.-made goods become relatively cheaper compared to French-made goods.
B) French citizens are more likely to buy U.S.-made goods.
C) U.S. citizens are less likely to buy French-made goods.
D) All of the above answers are correct.
Question 2
Which of the following is a liability on the balance sheet of the Federal Reserve System?
A) currency
B) U.S. government securities
C) mortgage-backed securities
D) None of the above are correct because they are all assets of the Federal Reserve.
These examples of stimuli were used in the experiment by Vinckier et al. (2007). Mouton is the Frenc
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