Suppose there is a real depreciation of the dollar. Which of the following may have occurred?
A) foreign currency has become more expensive in dollars.
B) foreign goods have become more expensive to Americans.
C) the foreign price level has increased relative to the U.S. price level.
D) all of the above
E) none of the above
Question 2
As the unemployment rate falls,
A) the proportion of the unemployed finding a job increases.
B) the separation rate increases.
C) the young and unskilled experience larger-than-average decreases in unemployment.
D) both A and C.
E) all of the above
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