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the first one Suppose a basket of goods costs $100 in the U.S. and 50 in France. What exchange rate, in dollars per euro, would
the first one
Suppose a basket of goods costs $100 in the U.S. and 50 in France. What exchange rate, in dollars per euro, would be consistent with purchasing power parity? $1 $2 $1.50 $0.50 and Suppose a country's central bank announces that it is increasing the money growth rate. The country's currency will suddenly its rate of depreciation will then appreciate; rise appreciate; fall depreciate; rise O depreciate; fall In the long run, with variable real exchange rates, if American goods become more attractive relative to European goods, the dollar will experience a real and a nominal appreciation; appreciation appreciation; depreciation depreciation; appreciation depreciation; depreciation
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