The exchange rate between the dollar and the euro is
a. the price of European goods relative to U.S. goods.
b. the price of U.S. goods relative to European goods.
c. the number of euros you get for lending one dollar to a European for a year.
d. the number of euros you get for one dollar.
Question 2
Targeting money growth will lead to stable output growth only if
a. money demand and velocity change proportionally with output.
b. fiscal policy remains unchanged.
c. money demand and velocity are stable.
d. the IS curve is steep.
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