All Else Equal, If the Inflation Rate Increases in the U.S

question 124

Multiple Choice

All else equal, if the inflation rate increases in the U.S. but remains unchanged in Europe, then

• A)the prices of U.S.goods will remain unchanged in Europe.
• B)U.S.goods will become cheaper in Europe.
• C)U.S.goods will become more expensive in Europe.
• D)U.S.goods will become cheaper in the U.S.and their prices in Europe is undetermined.
• E)None of these.

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