Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

which answers are correct. theres more than one. Can you please explain to me as to why 1- Inflation is 8 percent in the UK

which answers are correct. theres more than one. Can you please explain to me as to why

1- Inflation is 8 percent in the UK and 4 percent in Germany, but the UK poundeuro exchange rate remains the same.

a. German goods will become relatively cheaper in the UK.

b. German goods will become relatively more expensive in the UK.

c. British goods will become relatively more expensive in Germany.

d. British goods will become relatively less expensive in Germany.

2- Inflation is 3 percent in Canada and 7 percent in Japan, but the exchange rate for Canadian dollars to Japanese yen increases from 70 to 80 Japanese yen.

a. The nominal cost of goods made in Japan will become more costly compared to the Canada

b. The Japanese currency will become more expensive.

c. The Japanese currency will become cheaper.

d. Japanese goods will become relatively cheaper compared to Canadian goods.

e. Japanese goods will become relatively more expensive compared to Canadian goods.

f. The nominal cost of goods made in Japan will become less costly compared to the Canada..

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Placement Microeconomics

Authors: Bill Hurd

1st Edition

1531150306, 978-1531150303

More Books

Students also viewed these Economics questions

Question

List the learning domains.

Answered: 1 week ago