According to Purchasing-Power Parity,if the Federal Reserve Increased the Money

question 41

Multiple Choice

According to purchasing-power parity,if the Federal Reserve increased the money supply

• A)U.S.prices would rise and the nominal exchange rate would rise.
• B)U.S.prices would rise and the nominal exchange rate would fall.
• C)U.S.prices would fall and the nominal exchange rate would rise.
• D)U.S.prices and the nominal exchange rate would fall.

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