Holding nominal exchange rates constant, if inflation in Europe ...

[folubunmi]

Holding nominal exchange rates constant, if inflation in Europe exceeds inflation in the United States,
 
  A) the real exchange rate (/) will rise, and the euro will buy more in the U.S.
  B) the real exchange rate (/) will rise, and the euro will buy less in the U.S.
  C) the real exchange rate (/) will fall, and the euro will buy more in the U.S.
  D) the real exchange rate (/) will fall, and the euro will buy less in the U.S.

Question 2

The United States is an example of
 
  A) a customs union.
  B) a free trade area.
  C) an economic union.
  D) a common market.

[ally]

Answer to Question 1

A

Answer to Question 2

C

[folubunmi]

Wow, this really help

[TheNamesImani]

Thanks for the timely response, appreciate it