Refer to Figure 18-2. Consider the market for U.S. Dollars against the British pound shown in the graph above. From this graph we can conclude that the dollar price of a British pound has ________ to ________ dollars per pound
A) decreased; 2.00 B) increased; 2.17 C) decreased; 0.46 D) increased; 0.50
Question 2
Which of the following is not a cost posed by inflation?
A) Firms must pay for changing prices on products and printing new catalogs.
B) The money that consumers and firms hold loses its purchasing power.
C) Banks can lose if they under predict inflation and charge an interest rate that does not completely compensate for inflation.
D) Inflation reduces the affordability of goods and services to the average consumer.
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