The latest, ongoing international round of trade negotiations is called the:

Alejandro expects the price level to rise from 105 this year to 108 next year. If the price level rises to 110 next year instead of 108, which of the following will occur?

A) Alejandro's real wage rises. B) Alejandro's real wage remains unchanged. C) Alejandro's real wage may rise or fall, depending on the unemployment rate. D) Alejandro's real wage falls.

All of the following statements are true about the real exchange rate, given by the relation = , EXCEPT

A) a greater change in P (domestic price) compared to a change in (foreign price) necessitates a rise in the nominal rate, , to keep the real rate unchanged. B) a pegged exchange rate system requires tight control of the money supply. C) there is a one-to-one correspondence between the real and nominal exchange rates. D) an expansionary monetary policy raises the real exchange rate. E) the real exchange rate would be the same as the nominal exchange rate only if the difference between domestic and foreign inflation rates is zero.