Author Question: If the prices in the United States rise faster than those in other countries, A) the exchange ... (Read 47 times)

evelyn o bentley · **on:** Jun 29, 2018

If the prices in the United States rise faster than those in other countries,

A) the exchange rate rises.
B) the exchange rate falls.
C) then interest rate parity must not hold.
D) the interest rate in the United States falls.

Question 2

If this year the price level is 135 and last year it was 125, the inflation rate is

A) 8 percent.
B) 10 percent.
C) 12 percent.
D) none of the above.