When the expected dollar-euro exchange rates (E^e $/euro) rises, the foreign expected dollar return curve shifts

February 2010, the price of gasoline in the Florida was $2.629 per gallon and the CPI was 202.4 with a base period of 1982 to 1984. What was the real price of gasoline per gallon in base period dollars?

A) $1.00 per gallon B) $5.32 per gallon C) $1.29 per gallon D) $1.809 per gallon E) $2.629 per gallon

Holding other factors constant, an increase in the capital stock ________ the real wage and ________ employment.

A. increases; increases B. decreases; increases C. increases; does not change D. increases; decreases