Author Question: Under flexible exchange rate regime, a money-induced A) decrease in U.S. prices causes an ... (Read 49 times)

Sufayan.ah · **on:** Jun 30, 2018

Under flexible exchange rate regime, a money-induced

A) decrease in U.S. prices causes an immediate appreciation of the foreign currencies against the dollar.
B) increase in U.S. prices causes an immediate appreciation of the foreign currencies against the dollar.
C) increase in U.S. prices causes an eventual appreciation of the foreign currencies against the dollar.
D) increase in U.S. prices causes an eventual depreciation of the foreign currencies against the dollar.
E) decrease in U.S. prices causes no change in foreign exchange rate.

Question 2

During the period from 1978-2012, the difference between annual inflation rates of EU countries and the German inflation rate

A) grew at an accelerating rate.
B) remained fairly constant.
C) largely disappeared.
D) went through periods of hyperinflation.
E) trended upward at a declining rate.