Question
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..
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