Multiple Choice
If the nominal dollar price of the euro decreases by 10% (from $1.00 to $.90) and the ratio of the price level in Europe to the price level in the U.S. increases by 20%, the real dollar price of the euro will
A) increase.
B) decrease.
C) stay the same.
D) increase and then decrease.
Correct Answer:
Verified
Correct Answer:
Verified
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