Author Question: In 2011, a dollar could be traded for 100 yen and in 2012 a dollar could be traded for 90 yen. ... (Read 59 times)

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

In 2011, a dollar could be traded for 100 yen and in 2012 a dollar could be traded for 90 yen. Between these two years, the dollar has become ________ valuable and so the dollar has ________.

A) more; appreciated against the yen
B) less; depreciated against the yen
C) more; appreciated against the dollar
D) less; appreciated against the yen
E) more; depreciated against the yen

Question 2

According to the equation of exchange, if velocity and real GDP do not change, a 3 percent increase in the quantity of money

A) raises the price level by 3 percent.
B) raises the price level by 3 (velocity).
C) raises the price level by less than 3 percent.
D) lowers the price level by 3 (real GDP).
E) lowers the price level by 3 percent.