An American farmer sells produce to an individual living in Bermuda. To Americans, the produce is a(n)

Assuming no change in the nominal exchange rate, how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)

A) The real exchange rate will fall. B) The real exchange rate will be unaffected. C) The real exchange rate will rise. D) The impact on the real exchange rate cannot be predicted.

If, during the negotiations between the union and the management a strike occurs, it would be because

a. The union is trying to convince the management that it will stick to its strategy b. The management doesn't believe the union's threat c. All of the above d. None of the above