If the exchange rate between the U.S. dollar and the euro was 1.20 ($1.20 = one euro), what would be the price in dollars of a bottle of French wine selling for 40 euro?

The figure above shows the loanable funds market. At an interest rate of

A) 4 percent, the quantity supplied of loanable funds equals $18 trillion. B) 8 percent, the quantity demanded of loanable funds exceeds the quantity supplied. C) 6 percent, the quantity demanded of loanable funds equals $14 trillion. D) 8 percent, there is a surplus of loanable funds. E) 4 percent, there is a surplus of loanable funds.

Other things constant, a rise in the number of unskilled immigrants tends to

A) reduce income inequality. B) increase income inequality. C) have no effect on income inequality. D) initially reduce income inequality, but then increase it because immigrants steal jobs from citizens.