Assume That the Price Level in Both the United States

question 93

Multiple Choice

Assume that the price level in both the United States and Europe is 200,and that the real and nominal exchange rate is 6 euros per dollar.If the price level in the United States increases by 20 percent,what must the nominal exchange rate be if the real exchange rate is to remain the same?

• A)6 euros per dollar.
• B)5 euros per dollar.
• C)8 euros per dollar.
• D)7 euros per dollar.

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Definitions:

Lack Of Attention

A deficiency in the ability or willingness to focus on a specific task or object, often leading to challenges in learning and performing.

Hyperactivity

is an abnormal level of activity, often indicative of attention-deficit hyperactivity disorder (ADHD), characterized by excessive movement and difficulty with impulse control.

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Any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, or exercising.

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The act of giving support, confidence, or hope to someone, often leading to increased motivation or positivity.