When the Price Level in France Increases While the Exchange

question 307

Multiple Choice

When the price level in France increases while the exchange rate and the price level in the United States remain the same, the result is that

• A) U.S.-made goods become relatively cheaper compared to French-made goods.
• B) French citizens are more likely to buy U.S.-made goods.
• C) U.S. citizens are less likely to buy French-made goods.
• D) All of the above answers are correct.