In the long run, there appears to be: a. A clear and unequivocal ...

[Collmarie]

In the long run, there appears to be:
 a. A clear and unequivocal tradeoff between inflation and unemployment.
  b. No clear and unequivocal tradeoff between inflation and changes in a nation's nominal exchange rate.
  c. A clear and unequivocal tradeoff between inflation and employment.
  d. No clear and unequivocal tradeoff between inflation and changes in a nation's unemployment.
  e. None of the above.

Question 2

Assume that the exchange rate changed from (a) 2/ to (b) 1.125/. What are the corresponding exchange rates for the U.S. dollar?
 a. (a) 2/ and (b) 1.125/.
  b. (a) 1.125/ and (b) 2/.
  c. (a) 0.50/ and (b) 0.89/.
  d. There is not enough information provided to answer this question.

[leahm14]

Answer to Question 1

.D

Answer to Question 2

.C