Holding Nominal Exchange Rates Constant,if Inflation in Europe Exceeds Inflation

question 91

Multiple Choice

Holding nominal exchange rates constant,if inflation in Europe exceeds inflation in the United States,

• A)the real exchange rate ($/€)will rise, and the euro will buy more in the U.S.
• B)the real exchange rate ($/€)will rise, and the euro will buy less in the U.S.
• C)the real exchange rate ($/€)will fall, and the euro will buy more in the U.S.
• D)the real exchange rate ($/€)will fall, and the euro will buy less in the U.S.

---

Definitions:

Transition To Sound

The period in the late 1920s marking the film industry's shift from producing silent films to those with synchronized sound, revolutionizing cinema and leading to the widespread adoption of "talkies."

FBI

The Federal Bureau of Investigation, a federal law enforcement agency in the United States, focusing on investigations related to domestic intelligence and security.

Transition To Sound

The period in the late 1920s and early 1930s when the film industry moved from silent movies to sound films, significantly changing cinema.

FBI

The Federal Bureau of Investigation, a federal law enforcement agency of the United States government, primarily responsible for intelligence and security matters as well as federal crime investigation.