Question
1. Suppose I assume inflation in the USA rises compared to Europe (Euro). What would happen to the US dollar compared to the Euro? Appreciate
1. Suppose I assume inflation in the USA rises compared to Europe (Euro). What would happen to the US dollar compared to the Euro? Appreciate or depreciate? Discuss your answer using an appropriate diagram (use numerical values in the diagram to defend your answer). (Note: Apply demand curve, supply curve, equilibrium, etc.)
2. There is a prediction that the US dollar value will rise in the future in comparison with the Euro. What would happen to the US dollar compared to the Euro? Appreciate or depreciate? Discuss your answer using an appropriate diagram (use numerical values in the diagram to defend your answer). (Note: Apply demand curve, supply curve, equilibrium etc.)
3. Discuss the relationship between unemployment and inflation in the short as per Phillip's curve. Answer your question using an appropriate diagram.
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