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Author Question: Holding nominal exchange rates constant, if inflation in Europe exceeds inflation in the United ... (Read 138 times)

folubunmi

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on: Jun 30, 2018
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.


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ally

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


folubunmi

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

rachel

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  • Posts: 323
Reply 3 on: Yesterday
Great answer, keep it coming :)

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